Bitcoin and Ethereum Plunge, Wiping $390 Billion Off Crypto Market Amid Risk Aversion and Massive Liquidations
Jakarta, June 7, 2026 – The cryptocurrency market experienced a severe downturn last week as Bitcoin and Ethereum saw sharp price declines, collectively erasing an estimated $390 billion in market value. Bitcoin plunged by 17.3%, while Ethereum fell even more drastically by 22%, marking their worst weekly performance since the 2022 FTX collapse.
This substantial market contraction is attributed to a combination of factors, including strategic Bitcoin sales by institutional holders, a notable shift in investor appetite toward artificial intelligence (AI) stocks, and approximately $7 billion in liquidations of leveraged crypto positions. The selloff reflects a broader “risk-off” sentiment prevailing across global financial markets, compelling investors to reduce exposure to volatile assets like cryptocurrencies.
Drivers Behind the Decline
Market analysts noted that the recent minor Bitcoin sales by Strategy, a major institutional investor, have heightened concerns among traders. Additionally, the migration of capital into burgeoning AI-related equities has drawn funds away from digital currencies. The cumulative effect has intensified selling pressure across the crypto space.
“The crypto market is feeling the heat from global economic uncertainties and a rotation into AI and technology stocks that promise more stable growth prospects,” said a senior market strategist. “This environment is forcing investors to reassess risk, triggering liquidations, especially in leveraged positions.”
Impact on Other Cryptocurrencies
The bearish trend was not limited to Bitcoin and Ethereum alone. Altcoins such as Solana (SOL) tumbled more than 25% over the week, with SOL dropping below key support levels amid subdued trading volume and macroeconomic headwinds. XRP also declined to around $1.09, losing over 18% in the past week as Bitcoin’s weakness rippled through the market.
Adding to market unease, reports surfaced of Bhutan selling 738 BTC, valued at approximately $44.88 million, to finance a government initiative, signaling further institutional selling pressure.
Investor Outlook
With $7 billion wiped out in leveraged positions, crypto traders are bracing for continued volatility. Market participants will be closely monitoring for catalysts such as regulatory clarity, large-scale institutional buying, or improvements in macroeconomic indicators to signal a potential rebound.
However, sustained capital inflows into AI and other technology sectors may continue to siphon investments away from cryptocurrencies, prolonging the downward pressure on prices.
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