Bitcoin fell below the $66,000 mark late Tuesday, marking its lowest level in weeks as pressure spread across the broader crypto market. The asset dropped to around $65,500 before a slight rebound to $67K by early Wednesday, according to The HodlFM’s pricing data. The decline followed a sharp sell-off that erased more than $4,500 in a single day, the steepest drop since early February.
Ethereum mirrored the downturn, falling 7.5% to $1,816. Other major tokens also recorded losses. BNB declined 7.3% to $630, XRP slipped 5%, and Solana posted the steepest drop among large-cap assets, down 7.7%.
The sell-off coincided with a wave of liquidations across leveraged positions. Data from CoinGlass shows roughly 277,000 traders were liquidated over a 24-hour period, totaling about $1.83 billion. More than 90% of those liquidations came from long positions, concentrated in bitcoin and ether.
ETF outflows and forced liquidations weigh on sentiment
Institutional flows added further strain. U.S. spot bitcoin exchange-traded funds recorded $519.2 million in net outflows on Tuesday, extending a streak of 12 consecutive days of withdrawals, according to SoSoValue. Spot Ethereum ETFs also continued their negative trend, logging $90.2 million in outflows and marking 16 straight days of redemptions.
Oil markets reflected the same tension. WTI crude rose 1.95% to $95.7, while Brent crude climbed 1.91% to $97.80 per barrel.
Geopolitical tensions deepen market stress
The latest price action came amid renewed military activity between the United States and Iran. The U.S. Central Command confirmed it conducted “self-defense strikes” after intercepting Iranian missiles and drones. It also reported missile launches targeting regional neighbors, including Kuwait and Bahrain.
The escalation followed stalled negotiations tied to a two-month ceasefire and ongoing discussions over the Strait of Hormuz. President Donald Trump addressed the situation on Truth Social, stating:
“The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today.”
Despite that statement, Iran’s Tasnim news agency reported a halt in talks until Israeli military actions in Lebanon cease.
Strategy sale and Mt. Gox movement add pressure
Corporate activity also influenced sentiment. Strategy disclosed it sold 32 bitcoin between May 26 and May 31 for about $2.5 million, its first sale since December 2022. The company stated the proceeds would support distributions tied to its preferred stock offering.
The scale of the transaction remained small relative to Strategy’s holdings of more than 843,000 BTC. Still, the timing drew attention.
At the same time, blockchain data showed renewed activity from the long-dormant Mt. Gox estate. Approximately $739 million worth of bitcoin moved from cold wallets, marking the first such transfer in over two months. The estate continues its creditor repayment process ahead of an October 31, 2026 deadline.
Large transfers tied to Mt. Gox have historically triggered selling concerns, as recipients may liquidate assets once distributions arrive.
Diverging views on market direction
Not all analysts see the current outflows as structurally significant. Bloomberg Intelligence’s Eric Balchunas said that $3 billion in ETF outflows from a $100 billion base is “totally meaningless” in the context of typical fund flows. He noted that cumulative inflows since launch remain near $57 billion.
Long-time bitcoin critic Peter Schiff renewed his bearish stance. He wrote on X: “When Bitcoin breaks $50K, it should be a quick fall below $20K.” His comments sparked pushback from the crypto community, with users pointing to his history of similar predictions.
There is way too much complacency in Bitcoin for the market to be anywhere near a bottom. When Bitcoin breaks $50K, it should be a quick fall below $20K, which should be a big enough drop to shake the conviction of long-term HODLers, causing many to finally throw in the towel.
— Peter Schiff (@PeterSchiff) June 2, 2026
Outlook remains uncertain
Short-term direction depends on multiple overlapping factors. ETF flows, geopolitical developments, and large-holder activity continue to shape liquidity conditions. For now, bitcoin remains below a key psychological level, and market participants continue to reassess risk exposure across digital assets.
Anastasiia G
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