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Bitcoin plunged below $62,000 on June 4, 2026, triggering approximately $1.8 billion in crypto liquidations as a sharp selloff forced traders to unwind leveraged positions. The crash marks one of the year’s most severe market dislocations, driven by a confluence of weakening demand, geopolitical tensions, and concerns about future interest rate policy.
Quick Facts
- Bitcoin fell to $61,351 intraday on June 4, 2026
- $1.8 billion in crypto liquidations triggered over 24 hours
- Bitcoin traders lost more than $800 million, Ethereum traders nearly $500 million
- The crash ranks among 2026’s largest liquidation events, comparable to the $2.41 billion wipeout in late January
What Triggered the Selloff
The crash resulted from multiple converging pressures on the crypto market. Analysts cited weakening Bitcoin demand as the primary driver, with research from CryptoQuant noting the decline had “nothing to do with stocks, oil, or macro data,” but rather reflected shifting investor appetite. However, geopolitical tensions also played a role: U.S.-Iran conflict escalated earlier in the year, pushing crude oil prices higher and raising inflation concerns that undermined expectations for Federal Reserve rate cuts. Some Fed officials even signaled potential rate hikes rather than cuts, shocking risk assets including crypto.
A major catalyst emerged on June 1 when MicroStrategy (MSTR) announced its first Bitcoin sale in nearly four years, offloading 32 coins from its holdings of over 840,000 BTC. While small in absolute terms, the sale spooked retail traders and accelerated capital outflows from spot Bitcoin ETFs. According to data from TradingKey, spot Bitcoin ETFs had experienced net outflows of over 40,000 BTC—totaling approximately $3 billion—over the preceding ten trading days. Large whale holders, defined as those holding between 10,000 and 10,000 BTC, sold nearly 25,000 BTC in just one week, intensifying selling pressure.
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Scale of Liquidations and Market Losses
The $1.8 billion in liquidations represented forced closures of overleveraged positions, with more than $1.5 billion originating from long positions that traders were forced to unwind. Bitcoin traders bore the brunt, with more than $800 million liquidated, while Ethereum traders saw nearly $500 million wiped out. Retail sentiment on trading platforms shifted sharply into “extremely bearish” territory, with chatter around Bitcoin surging nearly 60% over the 24-hour period.
The broader crypto market faced deeper damage. According to TradingKey analysis, the total cryptocurrency market capitalization fell to $2.18 trillion on June 4, representing a 48% decline from its peak of $4.2 trillion reached in late 2025. Bitcoin’s own trajectory from its all-time high of $126,000 set in October 2025 underscored the severity of the correction. Major altcoins followed suit, with Ethereum approaching $1,700, Binance Coin briefly falling below $600, and Solana plunging 7% to lose the $70 mark.
Market Technicals and Recovery Prospects
Despite the sharp decline, technical indicators suggested the market may have approached an oversold condition. Bitcoin’s Relative Strength Index (RSI) fell into “extreme oversold” territory at levels near 18, while sentiment indices registered “extreme fear.” Mining profitability data from Antpool showed that daily net profits for major mining operations including Antminer, Whatsminer, and Avalon had turned negative, approaching shutdown levels—a sign that Bitcoin’s price had neared production costs.
The $60,000 psychological support level held significance both technically and symbolically, having previously provided support during a February decline. Analysts noted that while further downside could not be ruled out, the combination of oversold conditions and diminished selling pressure suggested a retest rather than a sustained breakdown below that threshold. Bitcoin recovered above $63,000 by the time of the latest reports, though it remained down significantly from the prior week’s levels above $70,000.
Sources
- Yahoo Finance — Bitcoin’s price action, $1.8 billion liquidation figures, breakdown by asset (Bitcoin $800M, Ethereum $500M), retail sentiment data, and MicroStrategy’s sale details
- TradingKey — Crypto market capitalization decline ($4.2T to $2.18T), three-part analysis of causes (U.S.-Iran conflict, Federal Reserve policy, MicroStrategy), ETF outflows ($3 billion over ten days), whale selling data (25,000 BTC in one week), mining profitability data, and technical indicators (RSI, sentiment index)
- CoinDesk — Bitcoin price floor ($61,300), liquidation timing and scale, and market recovery narrative
- CryptoQuant — Analysis attributing the decline to weakening Bitcoin demand rather than macroeconomic factors
