Digital assets are experiencing deep sell-offs, with the overall crypto market cap crashing 4.5% and losing $110 billion over the 24 hours leading up to press time on June 2, 2026.
Specifically, the cryptocurrency market cap has dropped from $2.5 trillion on Monday, June 1, to $2.39 trillion on Tuesday, June 2, as evidenced by data retrieved by Finbold from CoinMarketCap.
The latest crash is only one in a series of broader correction events that accelerated earlier this year.
As per the same data, the total cryptocurrency market valuation sat at $2.58 trillion one week and $2.59 trillion one month ago.
In other words, the crypto industry has lost roughly $200 billion in a month, with most of it erased in the past seven days.
Why is crypto crashing today?
Virtually all leading digital currencies have suffered losses over the past. Bitcoin (BTC) has plummeted 5%, below $70,000, while Ethereum (ETH) is again trading under $2,000, having lost around 1%. XRP was also in a bad spot, losing 3% and hovering around $1.26 as a number of bearish indicators threaten to drag it to $1.15.
Most clues left in the wake of the overall crypto bloodbath point to Bitcoin. Its downturn triggered more than $766 million in liquidations across digital asset markets, which largely coincides with significant U.S. Spot Bitcoin ETF outflows.
Notably, BTC investment products recorded more than $480 million in net withdrawals on June 1, more than ten times what was reported by Ethereum ETFs, which shed around $44 million.
Investor sentiment was also rattled further by reports that Strategy began selling Bitcoin too. The news sent trading activity up as volatility intensified, with total crypto trading volume exceeding $110 billion over the past 24 hours, up sharply from roughly $88 billion the previous day.
Fear & Greed Index continues to drop: Will crypto recover?
As the crypto market cap sank, the Crypto Fear & Greed Index, a metric that tracks market sentiment, fell from 31 to 29 out of 100, placing it closer to the ‘Extreme Fear’ range.
Several factors appear to be driving the pessimism, including escalating geopolitical tensions between the United States and Iran, the already mentioned ETF outflows, and the broader decline in crypto prices.
However, periods of extreme fear have often preceded market recoveries, which is likewise supported by Bitcoin’s realized volatility dropping to a multi-year low on June 1.
Nonetheless, the latest crash has left traders cautious, as multiple macroeconomic and geopolitical risks still weigh on investor confidence.
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