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Bitcoin Sinks to $66,346 as $1.35B in Long Liquidations Accelerate Market Selloff
Bitcoin experienced a sharp decline in early June 2026, tumbling more than 6% in 24 hours to an intraday low of $66,948.
Key Takeaways:
- Bitcoin dropped over 6% in 24 hours to a June multi-week low of $66,948.
- The sell-off wiped out $1.35 billion in crypto long positions, according to CoinGlass data.
- K33 Research projects lower trading volumes and downward price drift through August.
Market Cap and Liquidation Crunch
Bitcoin’s poor start to June continued as the cryptocurrency fell below $67,000, reaching another multi-week low. The daily chart shows Bitcoin steadily declining from above $71,500 late on June 1 to an intraday low of $66,346, a loss of more than 6% in just 24 hours.
The decline means Bitcoin lost nearly $7,000 during the first two days of June alone, while the June 2 drop reduced its market capitalization to under $1.35 trillion. The weak performance also pushed the total crypto market capitalization below $2.5 trillion for the first time since April 13.
The sell-off triggered the liquidation of $800 million in leveraged positions, with nearly $767 million coming from long positions. Overall, long liquidations across the cryptocurrency market exceeded $1.35 billion, while only $136 million in short positions were liquidated. According to CoinGecko, the June 2 liquidations were the largest recorded so far in 2026.
Initially, the sell-off was attributed to the sale of 32 BTC by Strategy, a transaction some analysts argued should not have occurred. Although the sale represented less than 1% of the company’s total Bitcoin holdings, it was interpreted as a signal that Strategy might be abandoning its buy-only policy.
However, other observers believe Bitcoin’s price action will continue to follow historical patterns. According to the latest report from K33 Research, crypto markets—particularly Bitcoin and Ether—often experience a significant decline in trading volume, liquidity, and volatility during the summer months from June through August. As institutional and retail investors go on vacation, market participation decreases, resulting in sideways or downward-trending price action.
Bit Paine, Executive Chairman of Vibes Capital Management, rejected the idea that Strategy’s sale of 32 BTC caused the market downturn. In a post on X, he offered an alternative explanation.
“Bitcoin is dropping because we are within a structural correction inside a bear market, and this is what happens to volatile assets during bear markets. Iran negotiations breaking down and AI/SpaceX drawing capital away from markets are contributing factors. Bitcoin does not exist in a vacuum, but they are not the root cause. Narrative follows price.”
David Gokhshtein said he expects Bitcoin to fall further before eventually rebounding. Meanwhile, Eric Balchunas, Senior ETF Analyst at Bloomberg, argues that Bitcoin has become overly dependent on the ETF and Strategy (MSTR) narrative.
See also: "Crypto Crash Wipes Out 7% in 24 Hours: What’s Next?"
