Bitcoin (BTC) Plunges to $65K as Strategy Sells, ETF Outflows Continue

Table of Contents The flagship cryptocurrency experienced a dramatic downturn on Wednesday, plummeting to price levels unseen for more than eight weeks. Bitcoin declined by as much as 6% during the session, touching $65,485—a threshold last breached in the final days of March 2026. This steep decline extended what had already been characterized as the most significant single-session loss since early February. Just one day prior, Bitcoin surrendered over $4,500 in value, shattering critical technical support zones that traders had been monitoring. According to analytics platform CoinGlass, roughly 277,000 market participants faced forced liquidations during the preceding 24-hour period. Aggregate liquidation values climbed to $1.83 billion, with over 90% representing long positions—predominantly concentrated in Bitcoin and Ethereum holdings. Market analyst Daan Crypto Trades highlighted on X that Bitcoin’s daily Relative Strength Index has descended to territory that has traditionally aligned with cyclical price floors. “It reached this zone rapidly because of the unrelenting and swift downturn we’ve witnessed over the last fortnight,” he observed, noting that the approximately 10% correction compressed into merely 48 hours represented an exceptionally accelerated move. While acknowledging these aren’t foolproof indicators, he stated “such readings do typically signal it’s worthwhile to start monitoring developments closely again.” $BTC's Daily RSI level is yet again at an area where it has coincided with many of the previous bottoming regions. It got here quickly due to the relentless and quick sell off we've seen the past 2 weeks with yesterday and today being down -10% alone. Keep in mind, these are no… pic.twitter.com/0IGbUaWja3 — Daan Crypto Trades (@DaanCrypto) June 2, 2026 Strategy Inc, which maintains the largest corporate Bitcoin treasury globally, revealed it liquidated 32 BTC throughout the May 26–31 timeframe at a mean price of $77,135 per unit, generating $2.5 million in proceeds. Despite representing a modest fraction of the company’s overall Bitcoin position, the transaction unsettled an already vulnerable marketplace. Bitcoin has fallen $6,000 since Michael Saylor's STRATEGY disclosed its first Bitcoin sale in 3.5 years. More than $2.41 billion in crypto positions have been liquidated in just 48 hours. STRATEGY currently holds 843,706 BTC, acquired for $63.9 billion at an average price of… pic.twitter.com/h7BVocqfuq — Bull Theory (@BullTheoryio) June 3, 2026 Strategy’s stock price retreated to levels not witnessed in nearly two months after the announcement surfaced. This development materialized against a backdrop of sustained Bitcoin ETF capital withdrawals, with approximately $1 billion exiting these investment vehicles across Monday and Tuesday combined—representing the 12th consecutive trading session of net redemptions, accumulating beyond $3 billion over a three-week span. Andri Fauzan Adziima, who serves as research lead at Bitrue Research Institute, explained to Cointelegraph that the selloff stems primarily from “leveraged position closures, substantial ETF redemptions, and technical chart breakdowns rather than exclusively Iran-related developments, though geopolitical tensions certainly magnify investor apprehension.” He anticipates volatile sideways movement, identifying genuine support in the $64,000–$65,000 range. Geopolitical instability has further dampened market sentiment. United States forces maintained military operations targeting Iranian assets, with US Central Command verifying it successfully neutralized numerous Iranian ballistic projectiles and unmanned aerial vehicles while executing strikes on Qeshm Island infrastructure. BREAKING: Iran has launched a massive ballistic missile and drone attack, striking the US 5th Fleet headquarters in Bahrain along with US bases in Kuwait, Ali Al Salem + Arifjan, and an oil tanker near Dubai, in response to new US strikes on Qeshm Island and an Iranian oil tanker… — The Hormuz Letter (@HormuzLetter) June 3, 2026 Iran deployed missiles directed at neighboring territories including Kuwait and Bahrain, although CENTCOM reported all failed to strike intended destinations. A 60-day ceasefire arrangement between Washington and Tehran remains technically active, yet diplomatic efforts to extend this agreement and resolve the Strait of Hormuz blockade have yet to yield substantive progress. Iran’s Tasnim news outlet indicated the nation would suspend dialogue with the United States pending Israeli cessation of operations in Lebanon. President Trump contested those characterizations through Truth Social, asserting that bilateral communications between the parties had maintained daily continuity. Bitcoin clawed back a portion of its losses and was changing hands near $66,855 during early Wednesday morning Eastern Time trading.