Bitcoin Crashes Below $62K, $1.5B Liquidated as Treasury Pushes Strategic Reserve

Bitcoin News

Bitcoin tumbled below $62,000 in late Wednesday trading, erasing more than $5,300 in a single session and registering a decline of nearly 8% over 24 hours. The flagship asset traded near $61,463 by 10:00 PM EDT, down from a daily high of $67,416 and uncomfortably close to the psychological $60,000 floor. The drop pushed BTC roughly 51% below its October 2025 record of $126,277. A confluence of institutional outflows, leveraged liquidations, geopolitical anxiety around U.S.-Iran tensions, and Strategy's symbolic disclosed sale of 32 BTC at an average $77,135 reshaped sentiment, breaking weeks of tentative recovery and reinforcing a deeper structural shift in positioning.

The cascade triggered more than $1.5 billion in leveraged crypto liquidations across 24 hours, with over 208,000 traders forcibly closed out. Bitcoin alone accounted for roughly $800 million in wiped positions, while Ether contributed another $386 million. Long-side exposure absorbed virtually all of the damage. Research desks argue the weakness reflects rotation rather than crypto-specific failure: BTC drawdowns this year have lined up with rallies in gold and artificial intelligence equities, as investors trim Federal Reserve rate-cut expectations. If that correlation persists, a recovery may hinge less on internal catalysts and more on macro liquidity and softer inflation prints.

Total crypto liquidations crossed $1.1 billion on June 3, with $945 million of that figure concentrated in long positions. The forced selling rippled across the broader market — Ether slid under $1,800, Solana posted steeper percentage losses, and XRP printed fresh year-to-date lows. Sentiment gauges shifted dramatically, with the Crypto Fear & Greed Index sliding into "Extreme Fear" territory. Upcoming U.S. jobs data, lingering Iran-related risk, and post-rally profit-taking layered onto an already fragile tape. The breakdown produced the lowest daily candle close since February, marking a clean technical inflection point for traders tracking trend continuity.

U.S. Treasury Secretary Scott Bessent told the Senate Finance Committee that the department is "proceeding with all deliberate speed" on the strategic Bitcoin reserve and digital asset stockpile established under the 2025 executive order. The federal government currently holds 328,372 BTC, valued near $215 billion at current prices, sourced largely from seizures. Bessent also signaled the Digital Asset Market CLARITY Act could clear the Senate this summer after roughly a year of post-House inaction. The framework would resolve long-standing securities-versus-commodities questions and is widely viewed as a prerequisite for the next wave of institutional capital allocation into digital assets.

In a striking on-chain curiosity, a 15-year-old Casascius physical Bitcoin was peeled and swept this week, releasing 25 BTC worth approximately $1.78 million. The coin, part of the Series 1 batch produced between 2011 and 2013 by developer Mike Caldwell, originally held a value of less than $100 when minted. Of the 345 Series 1 coins created, 236 have now been redeemed. The relic transfer underscores the asymmetric long-horizon returns embedded in early blockchain participation and the cultural weight of physical bearer instruments tied to cold wallet key custody from the network's earliest era.

Spot Bitcoin ETF products extended their longest-ever outflow streak to 12-13 consecutive sessions, with cumulative withdrawals reaching roughly $3.45 billion. May alone saw $2.30 billion redeemed — the worst single month of 2026 — even as spot prices only declined 3.69% over the same window, suggesting silent institutional derisking ran well ahead of headline price action. Options desks reflect the bearish tilt: the $50,000 strike put expiring June 26 became the most-traded contract on Deribit, with significant volume also clustered at the $65,000 and $55,000 puts. Implied volatility spiked, with the BVIV index touching 53.17, its highest reading since April.

Technically, BTC at $63,264 sits below the immediate $62,847 resistance, with heavier overhead at $65,903 and $72,070. Immediate support clusters at $61,384, then $59,740 and $55,545. The RSI reading of 17.07 marks deeply oversold conditions historically associated with relief bounces, yet the bearish MACD and broader downtrend confirm sellers retain control. A bullish reversal needs reclamation of $62,847 on volume and follow-through above $65,903. A daily close beneath $59,740 invalidates near-term recovery scenarios and opens a measured path toward the $55,545 zone where buyers must defend convincingly.