June 11th, 2026

US$1.3T wiped out: AI stock collapse signals Bitcoin’s next leg down?

The cryptocurrency market currently exhibits profound signs of structural weakness as we navigate the middle of 2026. Bitcoin cycles have historically experienced massive drawdowns from their respective peaks. Previous bear markets routinely erased between 60 per cent and 80 per cent of the total market value. This specific cycle reached its absolute peak around the US$126,000 mark in October 2025.

Applying a standard 65 per cent drawdown to that peak places the potential bottom precisely in the US$44,100 range. We must look at the historical precedent to understand this trajectory. The 2017 peak experienced an 85 per cent decline. The 2021 peak suffered a 75 per cent correction. The data clearly points toward diminishing percentage drawdowns with each successive cycle. A 65 per cent drop fits perfectly within this established mathematical pattern and aligns with a much deeper correction than most retail participants currently anticipate.

I view Bitcoin fundamentally as a tech stock plus. The entire tech sector currently operates under the direct influence of the AI narrative. When the AI sector experiences a downturn, the entire tech complex follows suit. Consequently, Bitcoin will inevitably dip severely when the underlying tech leaders falter. We witnessed this exact correlation materialise in early June 2026 when AI memory chip stocks took a massive hit overnight. The sell-off began on June 5 and continued with extreme volatility tracking into the second week of June. This single session erased over US$1.3 trillion in market value from the semiconductor sector alone. The sheer scale of this capital destruction underscores the fragility of the current tech rally and its direct impact on digital asset pricing.

The initial trigger for this massive tech slump originated from Broadcom reporting its Q2 2026 earnings. The company revealed that its AI networking revenue missed analyst expectations. This disappointment occurred despite the revenue growing an impressive 143 per cent year over year.

The market reacted violently to this slight miss because investors had priced in absolute perfection. Major memory manufacturers subsequently experienced severe declines. SK Hynix dropped 7.5 per cent on June 10. Samsung Electronics fell 6.1 per cent on the exact same day. Micron Technology faced the most brutal punishment. The stock experienced extreme volatility and dropped roughly 17 per cent over just two sessions following the initial negative news. The Philadelphia Semiconductor Index suffered a major single-session drop in many years. The index fell about 10 per cent in a single day, with analysts citing extreme valuation sensitivity and crowded trades as the primary reasons for the violent correction.

Tech stocks continued their downward slide into June 10 and June 11. Asian chip stocks and various AI memory names fell sharply as fears of a massive tech bubble intensified. We must understand why memory stocks took the heaviest punishment during this sell-off. Despite the extraordinarily high demand for AI High Bandwidth Memory, deep concerns emerged regarding a broader memory chip crisis.

Industry reports highlighted significant inventory buildups for legacy memory products. Investors also engaged in aggressive profit-taking. After an annual rally that pushed many memory stocks to unprecedented heights, market participants simply took the opportunity to lock in their massive gains. The combination of oversupply fears in legacy products and extreme profit taking created a perfect storm for the memory sector. Market participants recognise that legacy memory products face severe margin compression. This realisation forces institutional funds to reduce their exposure to the entire semiconductor complex. The resulting cascade of sell orders accelerates the downward price momentum across all related technology assets.

Some analysts maintain that the underlying demand fundamentals for artificial intelligence remain entirely robust despite this catastrophic sell-off. They point to continued high levels of infrastructure spending by major hyperscalers as evidence that the long-term thesis remains intact. The market cares more about immediate capital flows than long-term promises.

We also face a massive shift in capital allocation as big AI initial public offerings approach the market. SpaceX leads this upcoming wave of massive tech listings. This impending influx of new supply guarantees significant capital rotation from existing technology and crypto assets into these new public market opportunities. The market simply lacks the liquidity to sustain current valuations while simultaneously funding these massive new public debuts. Venture capitalists and retail investors alike will redirect their capital toward these fresh opportunities. This rotation ensures that existing digital assets and mature technology stocks will face persistent selling pressure throughout the remainder of the year. The liquidity drain will fundamentally alter the risk appetite across the entire financial ecosystem.

This macro tech weakness directly explains the current on-chain reality for Bitcoin. For the initial time in this specific cycle, more Bitcoin sits at an unrealised loss than in profit. The network currently holds roughly 10.5 million coins underwater against just 9.8 million coins in the green. This underwater crossover represents a critical technical inflexion point. Bitcoin currently tests its 200-week moving average near the US$61,300 level.

Every time this specific underwater crossover appeared in the past, the price landed deep in a bear market near a major cycle low. The community completely disagrees on the interpretation of this data. Some participants desperately believe a bottom forms right here. Others recognise the historical pattern and prepare for significantly more pain ahead. I look at all these converging data points and see a very clear picture.

The evidence overwhelmingly points away from a simple bottom formation. The market structure indicates we have much more downside to explore before reaching a true generational buying opportunity. We must respect the historical data and prepare for a prolonged period of capital destruction.

Source:

https://e27.co/us1-3t-wiped-out-ai-stock-collapse-signals-bitcoins-next-leg-down-20260611/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

June 4th, 2026

The crypto liquidation spiral threatening another extended leg down to US$2.0T

A massive liquidation cascade served as the primary driver of this sell-off, which effectively erased over US$370 million in leveraged Bitcoin positions. The sheer scale of these forced liquidations created a self-reinforcing downward spiral that amplified what might have otherwise been a routine risk-off market movement.

The average funding rate consequently flipped negative to -0.00051929, a clear sign that traders are actively paying premiums to sustain short positions. High system leverage effectively acted as fuel for the fire, converting a moderate market pullback into a brutal plunge as over-leveraged long positions rapidly unwound.

This localised crypto turmoil is unfolding against a much broader backdrop of international market instability and escalating geopolitical friction. A strong 93 per cent correlation with the S&P 500 confirms that digital assets are heavily tied to broader macroeconomic shifts rather than trading in isolation. Wall Street recently saw its own historic momentum grind to a sudden halt when the S&P 500 posted its first losing session in nine days.

The index had surged nearly 20 per cent over the preceding nine weeks, an exceptional run that market commentators noted was strong enough to make even the most optimistic investors blush. This defensive pivot across global markets stems from rising oil prices and climbing Treasury yields, both of which are reacting directly to a severe military escalation between the United States and Iran.

The sudden return of energy-shock fears has promptly revived stubborn inflation worries, forcing bond markets to price in a 77 per cent probability that the Federal Reserve will hold its benchmark interest rate unchanged in December, within a range of 3.5 per cent to 3.75 per cent.

The geopolitical situation in the Persian Gulf deteriorated rapidly following a series of highly volatile military exchanges. Iran launched targeted missile and drone attacks directed at Kuwait and Bahrain, with one drone directly striking the passenger terminal at Kuwait International Airport and causing one confirmed fatality. In immediate retaliation, the United States military conducted airstrikes against an Iranian military ground control station situated on Qeshm Island in the strategic Strait of Hormuz.

The confrontation escalated further when American forces deployed a Hellfire missile to target and disable the engine room of an oil tanker that was actively bound for Iran’s Kharg Island. Donald Trump publicly suggested that a diplomatic resolution could still come together fairly quickly, although he simultaneously acknowledged that the current maritime blockade of Iran could easily drag past Labor Day.

This intensifying friction has prompted prominent financial figures to evaluate broader systemic risks, with Goldman Sachs Chief Executive Officer David Solomon noting that markets are currently exhibiting far more greed than fear, supported by ample liquidity that continues to feed massive capital raises like the upcoming SpaceX initial public offering and the recent Alphabet capital raise.

Despite this abundant liquidity, traditional financial markets are showing clear signs of exhaustion alongside digital assets. Commodities closed sharply lower across the board, led by a 5.3 per cent drop in palladium, a 3.1 per cent decline in silver, a 2.9 per cent fall in copper, and a 1.1 per cent slide in gold. Bitcoin faced prolonged selling pressure, dropping an additional 1.7 per cent to hover around US$65,500, bringing its total losses over a three-session span to 11 per cent.

Meanwhile, structural milestones continue to reshape traditional finance, as the Vanguard ETF tracking the S&P 500 officially became the first fund of its kind to amass US$1 trillion in total assets. This massive accumulation of traditional capital contrasts sharply with the recent defensive posture of digital asset investors, who are grappling with structural and institutional headwinds.

Beyond the immediate liquidation crisis, digital assets face significant structural hurdles posed by both regulatory developments and shifting corporate landscapes. Reports indicating that major payment networks like Stripe, Visa, and Mastercard are actively developing their own native stablecoin platforms have triggered widespread anxiety regarding intense competition for industry incumbents.

This looming corporate threat severely affected sentiment, causing Circle’s tokenised stock to plunge by more than 10 per cent on June 3. This corporate pressure coincides with a notable cooling of Wall Street enthusiasm for digital assets, evidenced by 12 consecutive days of net outflows from United States spot Bitcoin exchange-traded funds. Institutional caution is growing as market participants realise that impending regulatory shifts and mainstream corporate entries will inevitably create clear winners and losers, threatening established crypto business models.

The near-term trajectory for digital assets remains highly dependent on critical upcoming economic indicators and key technical thresholds. Global markets are focusing intensely on the impending release of United States employment data scheduled for June 6, as a surprisingly robust jobs report would likely validate a hawkish Federal Reserve stance and place additional pressure on speculative risk assets.

From a purely technical perspective, the total cryptocurrency market capitalisation is currently undergoing a vital test of its core support structure at the yearly low of US$2.17 trillion. Maintaining a position above this critical threshold could lay the groundwork for a temporary stabilisation or a short-term relief rally. A decisive daily close below US$2.17 trillion on accelerating volume would effectively validate the current bearish momentum, potentially exposing the market to an extended decline toward the psychologically important US$2.0 trillion zone.

Given the potent mix of forced spot selling, institutional retreat, and geopolitical escalation, the path of least resistance appears tilted toward continued downside risk until macroeconomic conditions stabilise.

Source:

https://e27.co/the-crypto-liquidation-spiral-threatening-another-extended-leg-down-to-us2-0t-20260604/

Anndy Lian

www.anndy.com

j j j

June 2nd, 2026

Bitcoin down 3.32% as US$283M in liquidations wipe out leveraged traders: Saylor’s power?

The financial markets presented a striking dichotomy as June began, with traditional equities soaring to unprecedented heights while Bitcoin stumbled under the weight of institutional exodus. This divergence tells a compelling story about where smart money flows when uncertainty meets opportunity and reveals much about the current state of investor confidence across asset classes.

Wall Street celebrated its fourth consecutive day of record closes, with all three major indices finishing higher. The S&P 500 reached 7,599.96, gaining 19.90 points or 0.26 per cent. The Nasdaq Composite proved particularly strong, climbing 114.19 points to settle at 27,086.81, representing a 0.42 per cent increase. Even the more conservative Dow Jones Industrial Average managed to eke out gains, rising 46.42 points to 51,078.88, though its 0.09 per cent advance showed more modest enthusiasm. This sustained rally reflects growing confidence in technology sector momentum and easing geopolitical tensions.

The catalyst behind this equity euphoria stems largely from developments in artificial intelligence. NVIDIA CEO Jensen Huang unveiled the RTX Spark Superchip at the Computex conference, sending shockwaves through the technology sector. NVIDIA itself surged 6.26 per cent on the announcement, while partners and beneficiaries rode the wave higher. Dell Technologies jumped 11 per cent, Oracle gained 9.9 per cent, and Micron Technology climbed 6.6 per cent to cross the psychologically important US$1,000 per share threshold. Arm Holdings skyrocketed 16 per cent on news of its partnership with Nvidia. This massive AI product release triggered widespread demand for hardware and software, drawing capital into related names with remarkable velocity.

Certain technology companies did not share in this celebration. Qualcomm dropped 8.8 per cent, and Intel lost 4.7 per cent, indicating that investors distinguish between AI leaders and laggards with increasing precision. Salesforce led traditional blue-chip performance with a 9.57 per cent gain, showing that strength extended beyond pure technology plays. The broader market advance occurred despite initial volatility in energy markets, where crude oil futures spiked 8 per cent on Middle East supply concerns. Initial reports that Iran would halt communications caused this volatile oil surge. Sentiment recovered rapidly after President Trump intervened to clarify that diplomatic peace talks with Iran continue, allowing WTI crude to settle near US$92 per barrel, trimming the initial panic spike.

Macroeconomic indicators further supported this bullish equity environment. US factory activity expanded in May for a fifth consecutive month, providing fundamental support for equity valuations. Investors are keeping a close eye on upcoming labour data, starting with the JOLTS job openings report, to gauge the underlying strength of the domestic economy. In the Asia-Pacific region, share markets eased slightly from record highs as regional factors came into play. The Australian S&P/ASX 200 closed virtually flat at -0.03 per cent amid a 4.75 per cent national minimum award wage increase. This global perspective highlights the broad-based nature of the current economic expansion and demonstrates how varied local economic policies influence regional market performance.

Against this backdrop of equity market euphoria, the 3.32 per cent decline of Bitcoin to US$71,168.70 over 24 hours appears particularly stark. The cryptocurrency underperformed not just stocks but also its own recent trajectory, falling to its lowest level since mid-April. This weakness stems from sustained institutional selling pressure that has turned the narrative around digital assets decidedly negative.

The primary culprit behind Bitcoin’s struggles is persistent outflows from US spot Bitcoin ETFs, which have seen nearly US$3 billion in net redemptions over a 10-day streak. This marks the first time in 2026 that year-to-date flows have turned negative, signalling a meaningful shift in institutional appetite. The outflow streak indicates that the same institutional capital that propelled Bitcoin to new heights earlier in the year now rotates toward traditional assets offering clearer fundamental support. This persistent selling pressure removes a key source of buy-side support that had previously stabilised the digital asset during minor market corrections.

Adding symbolic weight to the selling pressure, Strategy executed its first Bitcoin sale since 2022. The firm disposed of 32 BTC for approximately US$2.5 million at an average price of US$77,135 between May 26 and May 31. The company explicitly stated that this transaction aimed to fund distributions on its preferred stock. While the transaction size proves immaterial relative to the massive crypto market, the psychological impact resonated loudly. Michael Saylor’s company had built its reputation on an unwavering accumulation strategy, making any sale a potential signal that even the most committed holders reassess their positions. The company still holds over 840,000 Bitcoin, maintaining its position as a major holder, but the policy shift damaged market sentiment disproportionately to the actual volume sold.

The price decline triggered a cascade of forced selling via leveraged long liquidations, exceeding US$283 million within 24 hours and representing a staggering 1,520 per cent spike. This liquidation wave amplified the downward move, transforming what might have been an orderly correction into a more violent repricing. The sudden dip triggered over US$90 million in Bitcoin-linked futures liquidations as leveraged long positions were liquidated. High leverage left the market fragile, and when prices broke below the US$72,000 support level and the 50-day moving average, the technical structure shifted to a bearish bias. The liquidation cascade acted as a downward amplifier rather than a root cause, but its impact on market psychology proved significant.

Strategy’s own stock suffered more than Bitcoin itself, sliding between 4.5 per cent and 6.5 per cent as investors recalibrated the premium on the corporate treasury model. This suggests that markets question whether holding Bitcoin on corporate balance sheets remains an unalloyed good when the asset shows weakness. The divergence between Bitcoin’s struggles and traditional markets’ strength highlights a critical reality. Institutional capital currently favours assets with clear earnings growth and fundamental value creation over speculative stores of value.

The near-term outlook for Bitcoin remains bearish as long as it stays below US$73,000. If the cryptocurrency holds above US$71,000, consolidation becomes possible, but a break below this support level risks a drop toward US$68,000. The key metric to watch involves ETF flow trends. A return to net inflows would signal returning demand and could stabilise prices, but continued outflows suggest further downside risk.

This market divergence reflects broader macroeconomic currents. US factory activity expanded for a fifth consecutive month in May, providing fundamental support for equity valuations. Meanwhile, Bitcoin struggles without similar fundamental anchors, relying instead on sentiment and flow dynamics that have turned negative. The contrast between the superchip-driven rally of Nvidia and the liquidation spiral of Bitcoin encapsulates the current market preference for tangible innovation over monetary speculation.

Investors face a critical choice between participating in the AI-driven equity boom or betting on a crypto recovery that shows few immediate catalysts. The data suggests smart money currently favours the former, rotating capital toward assets demonstrating clear growth trajectories while reducing exposure to more speculative positions. Until Bitcoin can reclaim the US$73,000 level with conviction and ETF flows stabilise, the path of least resistance points lower, even as traditional markets continue their march to record highs.

Source:

https://e27.co/bitcoin-down-3-32-as-us283m-in-liquidations-wipe-out-leveraged-traders-saylors-power-20260602/