[DigitalToday reporter Hyunwoo Choo] Bitcoin has fallen below $70,000 for the first time since April, prompting an assessment that it has entered a redistribution phase again. On June 2 (local time), Cointelegraph reported that selling pressure strengthened as increased loss selling, rising exchange inflows and extreme fear combined.

Selling intensified during European trading hours, pushing BTC/USD below the $70,000 level. The market viewed recent uncertainty as driving investors to accept losses and liquidate holdings.

STH-SOPR, an indicator of profit-taking by short-term holders, fell below 1. The reading was 0.98, suggesting that recent sellers may be new investors responding to uncertainty rather than long-term holders. Weaker expectations for a U.S.-Iran ceasefire were also cited as a backdrop to the price decline.

Moves by the cohort holding for 6 to 12 months were also cited as a burden. CryptoQuant analyst Ray Researcher (레이 리서처) assessed that this group activated potential selling positions. The amount of bitcoin they deposited to exchanges has continued to rise since May, expanding to levels last seen in October 2025 when bitcoin topped $126,000.

On-chain profit and loss metrics also deteriorated. According to Glassnode data, bitcoin's realized profit and loss ratio fell from -0.4 last week to -0.87. That means the trend of investors accepting losses and selling holdings has strengthened.

Investor sentiment also cooled. The Crypto Fear & Greed Index fell to 23, re-entering the extreme fear zone. Over the past week, the total cryptocurrency market capitalisation fell 7 percent, while bitcoin dropped 9.3 percent over the same period. Spot bitcoin exchange-traded funds also posted net outflows for 11 straight sessions, with the biggest outflow during that period at $733.4 million on May 27.

Still, a signal watched by bulls also emerged. Santiment said that as bitcoin slipped below $70,000, transactions worth at least $100,000 were observed at the highest level since April 22.