Bitcoin falls to four-month low amid liquidation surge market

Wednesday 03 - 16:19

By: Dakir Madiha

Bitcoin falls to four-month low amid liquidation surge market

Bitcoin dropped to its lowest level in four months on Tuesday as selling pressure intensified across global crypto markets. The asset fell as much as 7 percent, briefly touching 65,707 dollars, marking its weakest point since early April. The decline unfolded during Asian and European trading sessions on 3 June and accelerated as risk sentiment deteriorated across digital assets.

The selloff triggered a wave of forced liquidations across leveraged positions. Total crypto liquidations reached 1.86 billion dollars in 24 hours, with Bitcoin accounting for 896 million dollars and Ethereum for 482 million dollars. Long positions absorbed the bulk of losses, representing more than 1.66 billion dollars of liquidations, while short positions accounted for roughly 200 million dollars.

Several factors converged to deepen the downturn. Rising geopolitical tensions linked to negotiations between the United States and Iran over strategic maritime routes added pressure on risk assets. At the same time, US-listed Bitcoin exchange-traded funds recorded outflows exceeding 1.5 billion dollars, marking one of the largest capital withdrawals of the year. Additional pressure came after a major institutional holder, formerly known as MicroStrategy, confirmed the sale of 32 bitcoins for 2.5 million dollars in a filing covering transactions between 26 and 31 May.

Market weakness in crypto contrasted with strength in traditional equities. The S&P 500 closed above 7,600 points for the first time, while the Dow Jones added 243 points, supported by optimism around artificial intelligence-driven growth and upgraded corporate outlooks in the technology sector. This divergence underscored a shift in capital flows away from digital assets during periods of macroeconomic uncertainty.

Bitcoin also broke below its 20-day, 50-day, and 200-day moving averages, signaling sustained technical weakness. Analysts noted a near-term support zone between 64,000 and 65,000 dollars, with deeper support closer to February lows near 60,072 dollars. The cryptocurrency is now down more than 12 percent over the past week and trades roughly 47 percent below its October 2025 record high near 126,200 dollars.