Bitcoin rebounded from recent lows but remains below $62,000 as Fidelity recorded its largest Ethereum purchase in two months, signaling renewed institutional interest. The global cryptocurrency market capitalization stood at $2.13 trillion, contracting 1.25% over the last 24 hours, as major cryptocurrencies fell alongside stock indexes amid escalating Middle East conflict.

Market Performance and Liquidations

Bitcoin revisited the $60,000 floor but recovered overnight, holding above its weekly 200-week moving average near $61,800. Ethereum pulled back to the $1,600 region. Coinglass data shows 99,015 traders were liquidated in the past 24 hours for $304.32 million, with long positions comprising the majority of the wipeout. Bitcoin's open interest rose 1.23% in the last 24 hours, indicating new traders are aggressively selling or shorting the asset.

ETF Flows and Institutional Activity

SoSoValue data shows net outflows of $77.4 million from spot Bitcoin ETFs on Tuesday, while spot Ethereum ETFs saw net outflows of $40.9 million. Despite these outflows, Fidelity recorded its largest Ethereum purchase in two months. Cryptocurrency-related stocks plunged, with Strategy Inc. and Bitmine Immersion Technologies Inc. closing down 8% and 3.86%, respectively.

Analyst Outlook

Daan Crypto Trades noted Bitcoin is holding above its weekly 200-week moving average near $61,800, watching this week's local high as the key breakout level. Michael van de Poppe explained Bitcoin remains range-bound and needs more momentum before breaking decisively. Analysts view $64,000 as a key resistance level, with a breakout potentially triggering a move toward CME gap targets at $75,000 and $79,000.

On-chain analytics firm Santiment noted Ethereum’s positive-to-negative social commentary ratio hitting one of 2026’s lowest levels, placing it in an "extreme fear" zone. "Historically, Ethereum has tended to rebound when social sentiment reaches extreme FUD levels because prices frequently move opposite to the crowd’s expectations," Santiment added.

Strategy’s sale of 32 Bitcoin was immaterial in size but not in signal, according to market-making firm Wintermute. The disclosure removed the last reason for bulls to hold on in a market already experiencing bleeding flows. Wintermute noted that while Strategy had been an overhang for a month, the sale forced a reckoning the market needed to work through anyway.

Bitcoin’s bid had thinned for weeks, with retail selling crypto to chase equities and US institutions turning bearish. On Wintermute’s OTC desk, retail has been a net seller for weeks, while US institutions turned bearish over the past few days. Asia and Europe remained balanced. Exchange Traded Fund (ETF) data reinforced this picture, with May recording $2.43 billion in net outflows, marking the worst month of 2026.

Market Impact and Macroeconomic Factors

The macro backdrop compounded the pressure on risk assets. The US added 172,000 jobs in May against 80,000 expected, with April revised sharply higher. Job openings hit 7.6 million, the highest in nearly two years, and ISM services prices reached their highest level since August 2022. Consequently, the 10-year yield climbed to 4.55%.

Wintermute observed that strong economic data in this rate environment eliminates any near-term case for Federal Reserve cuts and keeps the restrictive path intact. The Nasdaq fell 4.7% on the week, and the S&P posted its first weekly loss since March as AI names declined alongside crypto.

Analyst Perspectives on Market Bottom

Anthony Pompliano argued on CNBC that bear markets are becoming shallower each cycle and current metrics historically signal proximity to a bottom. He noted that the percentage of Bitcoin held at a loss now exceeds the percentage held at a profit, a signal that has marked prior cycle lows.

Pompliano pointed to Strategy and Strive’s dollar reserves as structural protection against forced selling. He argued both companies built cash buffers specifically to cover dividend obligations without touching their Bitcoin holdings through a downturn.