Bitcoin slid to $70,000 on June 2, local time, hitting its lowest level in 7 weeks. Leveraged long positions worth $276 million were liquidated the same day.

According to blockchain outlet Cointelegraph, the drop came as risk-asset avoidance strengthened amid renewed military conflict between the United States and Iran. Bitcoin fell with the start of weekly trading as market participants cut positions. In derivatives markets, however, moves by large investors and market makers differed from those in the spot market.

The long-short ratio of top traders on Binance rose to 1.4 from 1.1 a week earlier. They gradually built long positions after bitcoin fell below $76,500 last Tuesday. Top traders on OKX increased their short exposure from last Thursday to Sunday, but reversed course on Monday, pushing the long-short ratio to 1.9.

Open interest across the futures market did not fall sharply. Bitcoin futures open interest on major exchanges stood at $43.5 billion as of June 2, little changed from a week earlier. That suggests traders did not rush to close positions to lock in losses despite forced liquidations.

Perpetual futures funding rates also rose again. On an annualised basis, the funding rate climbed to around 13 percent for the first time in about 6 months, above the neutral range of 6 to 12 percent. That is read as a sign of rising confidence among bullish investors, but it also increases the risk of cascading liquidations if prices fall further.

Selling pressure was clear in the spot market. Brent crude rose to $95 a barrel after geopolitical tensions between the United States and Iran escalated. Israel conducted a military operation in southern Lebanon over the weekend. The tech-heavy Nasdaq Composite Index rose 0.5 percent on June 2.

There were also signs of money flowing out of the crypto market. Anthropic confidentially submitted paperwork for an initial public offering, and Elon Musk's SpaceX also officially filed for an IPO. As investor attention shifts to the artificial intelligence sector, capital is leaving the crypto market, and that was cited as a backdrop to the decline.

Stablecoin indicators showed a similar trend. Tether's USDT traded at a 0.10 percent discount to the dollar on major exchanges over the past week. That signals funds are moving into traditional fiat currencies. U.S.-listed spot bitcoin exchange-traded funds have seen net outflows of $3.46 billion since May 13.

Ultimately, it is becoming clearer that the immediate pressure behind the recent correction lies in heavy spot-market selling. Derivatives indicators show signs that bullish positioning is reviving, but it is hard to say professional investors have clearly turned bullish based on a rising long-short ratio alone. Unless there is confirmation that outflows are slowing, market caution over whether bitcoin's short-term rebound will continue is likely to persist for some time.