Bitcoin and Ether Start June in Red as Risk Appetite Wanes

Bitcoin and ether started June in negative territory, with both major cryptocurrencies losing about 1% as geopolitical tensions and persistent ETF outflows weighed on sentiment. The broader CoinDesk 20 Index fell 2% since midnight UTC, led by declines in DeFi tokens. This downturn comes despite the post-halving environment, which historically reduces new supply and can support prices, but the current selling pressure suggests other factors are dominating.

Bitcoin traded around $72,700, marking its sixth negative day in seven, following a 3.5% slide in May — a month that historically averages a 7.4% gain. A record 10 consecutive days of net withdrawals from spot bitcoin ETFs saw $2.97 billion exit the products, signaling waning institutional demand. Meanwhile, the U.S. and Iran exchanged fire, and peace talks failed to reduce regional tensions, further dampening risk appetite. For crypto traders, the confluence of macro uncertainty and ETF outflows suggests a cautious near-term outlook. Additionally, rising US Treasury yields and a strengthening DXY have historically correlated with reduced risk appetite for crypto assets, as higher yields make traditional investments more attractive. On-chain data also shows increased whale concentration, with large holders accumulating during dips, which could provide a floor for prices. Exchange reserve drawdowns indicate that coins are moving to cold storage, reducing immediate selling pressure. Bitcoin dominance has remained elevated near 55%, suggesting that capital is rotating into BTC from altcoins, which may explain the relative underperformance of ether and DeFi tokens. Check NowPrice's crypto page for real-time pricing on bitcoin, ether, and other digital assets.

Looking ahead, traders will monitor any escalation in the Middle East and weekly ETF flow data for signs of a reversal. The CoinDesk DeFi Select Index dropped 2.6%, indicating that altcoins may face additional pressure if risk-off sentiment persists. Key levels to watch include bitcoin's support near $70,000 and resistance around $75,000. Miner break-even economics, currently estimated around $60,000-$65,000 post-halving, suggest that sustained prices below that range could force miners to sell, adding further downside risk. Conversely, a reversal in ETF flows or a de-escalation in geopolitical tensions could trigger a short squeeze, given the high level of leverage in futures markets.