Bitcoin Falls Below $67K as $1.8B Liquidated, MSTR Plunges, Senators Target 401(k)s

Bitcoin News

Bitcoin slipped beneath the $67,000 threshold during Tuesday's session, triggering more than $1.4 billion in long liquidations across the broader crypto derivatives complex. Ether dropped under $1,900 while Solana tumbled below $74, with major caps falling another 3% to 5% on the day. The decline extended a ten-day spot Bitcoin ETF outflow streak that has now surpassed $3 billion, exhausting one of the structural bid pillars that supported the market through October. With volatility metrics expanding and risk appetite contracting, traders rotated into defensive positions while questioning whether the corrective phase had completed or whether deeper retracements remained ahead for digital assets.

Strategy shares closed Tuesday's session down more than 9%, marking a fresh leg lower for the firm whose Bitcoin treasury approach had become a cornerstone reference for corporate crypto adoption. MSTR now trades roughly 70% below its 52-week all-time high of $457.22, finishing near $136.08 after shedding nearly 15% over five trading sessions. The STRC preferred product, central to Michael Saylor's reworked capital plan, dropped to $96.90, holding stubbornly below its $100 par value with only nine sessions remaining until the next dividend date. Cash reserves of roughly $871 million cover approximately six months of the estimated $1.7 billion annual preferred dividend obligation.

Senators Bernie Sanders and Elizabeth Warren formally urged the Department of Labor to withdraw a proposal designed to ease pathways for crypto allocations inside 401(k) retirement plans. The lawmakers argued the rule would dilute fiduciary protections and expose American retirees to volatility unsuited for long-duration savings vehicles. The push lands amid a sharp drawdown across digital assets and renewed congressional scrutiny of the integration between traditional retirement architecture and crypto exposure. For now, the Labor Department's position remains procedural, though sustained political pressure from senior Democrats may complicate any near-term expansion of crypto access through tax-advantaged retirement accounts in the United States.

Coinbase executed a direct market purchase of ENA tokens during the session, signalling preparation for a deeper commercial relationship with Ethena Labs that has yet to be formally announced. The exchange's open-market approach — atypical for a listed venue acquiring an altcoin in size — contributed to ENA's outperformance against the broader risk-off backdrop. ENA joined LIT, WLD, NEAR, and ZEC among the day's standout gainers, illustrating how idiosyncratic catalysts can decouple individual tokens from a Bitcoin-led drawdown when balance-sheet flows or strategic partnerships drive net buying pressure into otherwise illiquid markets.

Hyperliquid received prominent recognition framing the venue as the dominant marketplace for weekend and after-hours crypto trading flow. The platform's perpetual order books continue absorbing meaningful volume during periods when centralized peers report thinner activity, reinforcing its position within the decentralized derivatives stack. Liquidity migration toward Hyperliquid underscores how non-stop, permissionless venues compete with legacy crypto venues for marginal flow during high-volatility windows. The endorsement arrives as derivatives traders search for execution depth during sessions when broader spot tape across major blockchain markets thins, particularly around scheduled macro events and weekend gaps.

On-chain data points to derivatives positioning that had already reached extreme readings prior to the decline. The Bitcoin futures open interest leverage ratio climbed to 2.63% on June 2, while the perpetual leverage gauge reached 2.48% — both the highest values since October 6, 2025, just days ahead of last cycle's Black Friday cascade. Funding rates across exchanges hit approximately 0.018 the same day, the most positive single-session reading since early September, confirming that paid-up long positioning had crowded into one side of the book. Saylor's rare spot sale then acted as the catalyst that flushed those overextended structures from the market.

Price action sits at $67,114 with momentum deeply oversold; RSI at 23.32 confirms the velocity of the drawdown, while the bearish MACD reading aligns with the prevailing downtrend bias. Immediate support at $66,762 must hold to stabilize the tape, with $64,850 and $62,510 the next defensive thresholds if sellers maintain control. Reclaiming $67,901 would open the path toward $70,280 resistance, with $72,733 marking the line where the broader structure regains a constructive footing. A close beneath $62,510 invalidates any near-term recovery thesis and signals continuation of the established bear market regime.