Bitcoin came under heavy pressure on June 3, falling roughly 6.5% in the past 24 hours to trade near $66,000. The decline triggered more than $1.7 billion in liquidations across the crypto market, making it one of the biggest leveraged wipeouts in recent months.
According to one analyst, the selloff appears to be the result of several bearish developments hitting the market at the same time.
What Triggered the Selloff?
One of the biggest concerns remains the continued outflows from spot Bitcoin ETFs. Investors have now pulled roughly $3.45 billion from these funds over 11 consecutive trading sessions, creating persistent selling pressure.
At the same time, Strategy (formerly MicroStrategy) surprised the market by selling 32 BTC. While the amount is small compared to the company’s overall holdings, it marked the firm’s first Bitcoin sale since 2022 and caught the attention of investors.
Another factor weighing on sentiment was fresh activity from Mt. Gox-linked wallets. Reports of test transfers to exchanges revived concerns that additional Bitcoin could eventually enter the market as creditor repayments continue.
Fear Takes Over the Market
The combination of ETF outflows, Mt. Gox concerns, and the strategy’s rare sale pushed sentiment sharply lower.
The Crypto Fear & Greed Index dropped from 23 to 11 in just one day, placing the market deep into “Extreme Fear” territory. As Bitcoin broke below important price levels, leveraged long positions began to unwind, accelerating the selloff and contributing to the $1.7 billion liquidation event.
Analysts Watch Next Support Levels
Despite the market panic, crypto analyst Michaël van de Poppe sees the current decline as an important area to watch.
According to van de Poppe, the region around $66,000 could provide support for Bitcoin, while the 200-week moving average near $61,000 remains another major level of interest. He noted that he plans to continue accumulating positions if prices move further into this range.
More pain ahead…
Not everyone is optimistic.
Longtime Bitcoin critic Peter Schiff argued that the market has not reached a bottom yet. He warned that if Bitcoin falls below $50,000, the next move could send the asset below $20,000.
Schiff also criticized Strategy’s Bitcoin-focused strategy and pointed to growing risks surrounding the company’s financial products as market conditions become more challenging.
For now, Bitcoin traders remain focused on whether the $66,000 support zone can hold as fear continues to dominate the market.