Crypto June 5: BTC -50% from ATH, HYPE crashes 17%

Global crypto market on June 5: Bitcoin slides 50% below its record, Hyperliquid collapses after Arthur Hayes sell-off, while ETF outflows hit a 14th straight day

On Friday, June 5, the crypto market extended the week's sell-off. Bitcoin fell below $62,000 in the morning - roughly 50% beneath last October's record of $126,198 - while Ethereum sank to about $1,680, returning to a level last seen in April 2025. The day's standout event was a sharp drop in the Hyperliquid (HYPE) token after BitMEX co-founder Arthur Hayes sold his entire position. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded outflows for a 14th consecutive trading day.

Market overview

Sentiment remained unambiguously bearish. Bitcoin opened at $63,812 but slid to around $62,000 - and briefly below - during the morning, marking a decline of about 13% on the week, 20% on the month, and nearly 50% from the October record. Ethereum's daily open was 2.4% lower than Thursday's, and the coin fell to roughly $1,680, its lowest level in 14 months.

The sell-off was driven by a convergence of factors. Tension in the Middle East flared again after Hezbollah rejected Israel's ceasefire offer, increasing risk-off behaviour across global markets. At the same time, investors awaited the U.S. May employment report and remained skeptical about the Federal Reserve's ability to cut interest rates soon. Analysts also pointed to liquidity flowing into this year's "hottest" narrative - artificial intelligence and data centres - leaving cryptocurrencies in relative shadow.

Additional pressure came from the troubles of corporate Bitcoin holders, the digital-asset treasury (DAT) companies. Since the October record these firms have lost roughly $62 billion in market value, with their fully diluted capitalisation shrinking from $134 billion to $72 billion. Strategy (formerly MicroStrategy), which sold part of its Bitcoin holdings for the first time the previous week, saw its market cap fall to $45.6 billion from $102.2 billion in October - a 55% decline.

Top 15 coins on June 5

1. Bitcoin (BTC) ▼ ~$62,000 (50% below the October record)

Bitcoin opened at $63,812 and slid to roughly $61,900-$62,400 during the morning. Compared with a week earlier, BTC was down 13.2%; versus a month earlier, 20.1%; and versus a year earlier, 39.1%. It now trails the October record near $126,198 by about 50%. Bitcoin's market cap shrank to roughly $1.33 trillion. Long positions in the derivatives market continued to suffer most.

2. Ethereum (ETH) ▼ ~$1,680 (14-month low)

Ethereum opened 2.4% lower than Thursday and slid to about $1,676, later touching $1,666 - the lowest level since April 2025. On the week ETH lost 11.9%, and on the month 24.6%. Ethereum's market cap fell to roughly $233 billion. Spot Ethereum ETFs kept bleeding capital alongside the other crypto products.

3. Tether (USDT) ◆ $1.00 (stable)

USDT held its parity with the U.S. dollar. During the sell-off, Tether's capitalisation grew as traders shifted funds from volatile coins into stablecoins - classic risk-off behaviour. USDT trading volumes stayed elevated, reflecting high demand for liquidity.

4. XRP ▼ ~$1.15 (18-month low)

XRP kept falling, sliding to about $1.15 - an 18-month low. Over the month the coin lost more than 15%. The CLARITY Act's progress in the Senate remains a potential medium-term catalyst for the XRP ecosystem, but in the short term it too was pressured by the broad risk-off mood.

5. USDC ◆ $1.00 (stable)

Circle's USDC held a steady peg. During the sell-off, the stablecoin sector served as a haven: capital flowed into USDC as a liquidity reserve while the market awaited stabilisation.

6. BNB ▼ ~$630 (-2% 24h)

BNB slid to roughly $630. The Binance ecosystem token suffered from broad market pressure, though its decline was milder than that of high-beta altcoins.

7. Solana (SOL) ▼ ~$68 (-15.6% on the week)

Solana stayed below $70, around $68. On the week SOL lost 15.6% - the largest decline among major assets. It is the lowest level since December 2023. Despite the price weakness, Solana spot ETFs had attracted selective inflows in prior days, but on Friday the broader outflow wave dominated.

8. Hyperliquid (HYPE) ▼ -17% (Arthur Hayes sell-off and FCA warning)

The day's weakest large-cap token was HYPE, which lost about 17%. The drop was triggered by BitMEX co-founder Arthur Hayes's decision to sell his entire HYPE position, worth roughly $18 million, which set off a wave of liquidations. The pressure was compounded by a warning from the UK's Financial Conduct Authority (FCA) listing Hyperliquid as an unauthorised firm. HYPE's market cap fell to about $15 billion; its record of $75.51 had been reached just three days earlier, on June 2.

9. Dogecoin (DOGE) ▼ ~$0.085 (27-month low)

DOGE slid below $0.09 to about $0.085 - its lowest level in 27 months. During the sell-off the meme-coin sector suffered especially hard, as risk-off behaviour hit the most speculative assets hardest.

10. TRON (TRX) ◆ ~$0.31 (relatively stable)

TRX proved fairly resilient, sliding to roughly $0.31. Stablecoin flows on the TRON network and high USDT circulation provided some baseline demand even under market stress.

11. Cardano (ADA) ▼ ~$0.19 (-3% 24h)

Cardano slid to about $0.19, following the broad altcoin sell-off. On the month ADA posted a pronounced double-digit decline.

12. Chainlink (LINK) ▼ ~$7.90 (below $8.40)

LINK slid below $8.40 to about $7.90, erasing nearly all gains made since October 2023. The oracle network's token suffered alongside the rest of the market.

13. Stellar (XLM) ▼ -3% 24h

XLM kept unwinding its May rally gains, losing about 3% on the day. Payment-focused tokens broadly suffered from the wider market weakness.

14. Sui (SUI) ▼ ~$0.90 (-2% 24h)

SUI slid to about $0.90. Newer-generation Layer 1 networks saw intensified selling pressure as investors reduced risk in high-beta positions.

15. Avalanche (AVAX) ▼ ~$7.55 (-2% 24h)

AVAX rounded out the top 15, sliding to roughly $7.55. Avalanche kept falling alongside the entire Layer 1 sector.

A counter-move - Worldcoin (WLD) rises 5%

Bucking the broad decline was Worldcoin (WLD) - the token of the digital-identity project backed by OpenAI CEO Sam Altman. WLD rose nearly 5% over 24 hours and roughly 90% over the week, becoming one of the few assets able to resist the broader sell-off. The move illustrates that even in a bearish market, certain narratives tied to artificial intelligence can still attract capital.

Liquidations - $1.75 billion in 24 hours

Friday became another big liquidation day. Over 24 hours, positions worth roughly $1.75 billion were liquidated, the majority of them long or bullish bets. In a single Bitcoin tally alone about $560.72 million was wiped out. The dominance of longs in the liquidations confirms that the decline is still driven by forced unwinding of leverage rather than fundamental change. Such a contraction in open interest often signals an overheating correction that can build a healthier base over the medium term, even as it amplifies volatility in the short term.

Stablecoins - a haven during the sell-off, a compromise on stablecoin yield

During the sell-off, stablecoins played their classic haven role. USDT and USDC held a steady peg, but their combined trading volumes grew as capital flowed from volatile coins into cash-equivalent assets. The total stablecoin market stayed around $320 billion.

On the regulatory side, the Senate Banking Committee's draft bill prohibits digital-asset service providers from paying interest or yield to users simply for holding stablecoins, but allows stablecoin rewards or activity-linked incentives. This compromise tries to reconcile banks' concerns about deposit flight with the crypto industry's desire to offer yield.

NFT market - activity concentrates around blue-chip collections

The NFT market kept shrinking against the backdrop of broad crypto weakness. Global NFT sales volumes have fallen significantly in recent months, while transaction counts and active-user numbers have declined. At the same time, average sale prices rose, indicating that trading is concentrating around a small number of high-value deals. Blue-chip collections - Pudgy Penguins and CryptoPunks - retained dominance, but overall market health remains weak, and a notable share of volume is still driven by wash trading.

Spot crypto ETF flows - 14th outflow day, total assets shrink to $82.8 billion

U.S. spot Bitcoin ETFs recorded outflows for a 14th consecutive trading day. Total assets in these funds shrank to roughly $82.8 billion from $107.8 billion on May 14 - meaning the funds lost about a quarter of their value over roughly a month, through both price declines and net redemptions. BlackRock's iShares Bitcoin Trust (IBIT) continued to take the main hit.

Outflows also affected Ethereum, Solana and XRP products. The only crypto ETF segment that had shown inflows in prior days was Hyperliquid-linked products, but after HYPE's drop on Friday that strength also faded. Overall, ETF flows reflect institutional capital retreating from crypto risk assets under stress.

Security incidents - a relatively calm day, FCA warning on Hyperliquid

No large-scale protocol exploits were reported on June 5, so it was a relatively calm day in terms of security. However, regulatory attention turned to Hyperliquid: the UK's FCA added the platform to its list of unauthorised firms and warned users to avoid it. Analysts remind that periods of high volatility have historically increased the risk of phishing and social-engineering attacks, as traders act in haste.

Regulatory news - the CLARITY Act approaches a Senate floor vote

On the regulatory front, the focus remained on the CLARITY (Digital Asset Market Clarity) Act, which is approaching a vote on the Senate floor. The bill provides a clear framework for classifying digital assets, market structure and oversight, including stablecoins and decentralised finance (DeFi). Analysts note that SOL, AVAX and ADA could benefit from a clear spot ETF pathway under the CLARITY framework.

At the same time, the SEC and CFTC continue coordinated work under the "Project Crypto" initiative, with the heads of both agencies committed to harmonising rulemaking regardless of whether legislation passes. While this is a potential medium-term catalyst, in the short term market sentiment was set by macroeconomic and geopolitical factors.

Macroeconomic context - geopolitical tension and the AI narrative

The macroeconomic backdrop for risk assets stayed unfavourable. Tension in the Middle East flared again after Hezbollah rejected Israel's ceasefire offer, increasing uncertainty in global financial markets and demand for safe havens. Investors simultaneously awaited the U.S. May employment report, remaining skeptical about the Federal Reserve's ability to ease monetary policy soon.

Additional pressure came from capital rotation. Analysts note that liquidity is flowing into the artificial-intelligence and data-centre narrative, as well as into large initial public offerings (IPOs) and select equities, leaving cryptocurrencies relatively less attractive. These factors, combined with the troubles of corporate Bitcoin treasuries (DATs), created conditions in which every downside impulse was amplified.

Key numbers - June 5

• Bitcoin (BTC): ~$62,000 (open $63,812), ~50% below the October record of $126,198, -13.2% on the week, -20.1% on the month, -39.1% on the year; market cap ~$1.33 trillion
• Ethereum (ETH): ~$1,680, 14-month low, -11.9% on the week, -24.6% on the month; market cap ~$233 billion
• Solana (SOL): ~$68, -15.6% on the week, lowest level since December 2023
• XRP: ~$1.15, 18-month low, -15% on the month
• Hyperliquid (HYPE): -17%, Arthur Hayes ~$18M position sell-off, FCA warning; market cap ~$15 billion
• Worldcoin (WLD): +5% 24h, +90% on the week (counter-move)
• 24h liquidations: ~$1.75 billion, mostly longs; BTC ~$560.72 million
• Spot Bitcoin ETF: outflows for a 14th straight day, total assets ~$82.8 billion (from $107.8 billion on May 14)
• Corporate Bitcoin treasuries (DATs): -$62 billion in value since October; Strategy market cap ~$45.6 billion (-55% from October)
• Stablecoins: ~$320 billion market, USDT and USDC hold parity
• Key drivers: Hezbollah rejects Israel's ceasefire, anticipation of U.S. May employment data, AI/data-centre narrative attracting liquidity, DAT companies' troubles

AI disclaimer

This article was prepared with the help of artificial intelligence and human editorial oversight. All figures and facts were verified against publicly available sources at the time of writing. The cryptocurrency market is extremely volatile - prices can change significantly within hours. This material is informational and should not be considered financial advice, an investment recommendation, or a solicitation to buy or sell any assets. Always do your own research and consult a licensed financial advisor before making investment decisions.

Sources

• Yahoo Finance - Bitcoin and ethereum prices today, Friday, June 5, 2026: Prices continue their descent: https://finance.yahoo.com/personal-finance/investing/article/bitcoin-and-ethereum-prices-today-friday-june-5-2026-prices-continue-their-descent---5-reasons-why-113631165.html
• Sherwood News - Crypto digital asset treasury companies have shed $62 billion in market cap since October: https://sherwood.news/crypto/crypto-digital-asset-treasury-companies-have-shed-62-billion-in-market-cap-since-october/
• Sherwood News - "Sentiment for crypto is firmly in the gutter" as sector sinks, with tokens hitting multiyear lows: https://sherwood.news/crypto/sentiment-for-crypto-is-firmly-in-the-gutter-as-sector-sinks-with-tokens-hitting-multiyear-lows/
• CoinDesk - BTC, ETH, SOL and XRP ETFs bleed $4.4 billion over 13 sessions, only HYPE in green: https://www.coindesk.com/markets/2026/06/04/btc-eth-sol-and-xrp-etfs-bleed-usd4-4-billion-over-13-sessions-only-hype-in-green