Bitcoin Falls 10% to Below $66,000; $500M in Longs Liquidated

Bitcoin dropped below $66,000 on Wednesday, falling about 10% over three days after a sharp sell-off erased April gains. The cryptocurrency slid from just over $67,700 to an intraday low of $65,362 in roughly six hours before recovering to trade just under $66,000 by 1:09 p.m. EST.

The three-day decline removed about $8,000 from bitcoin’s price since Monday and temporarily cut its market capitalization to about $1.31 trillion. The move brought bitcoin closer to the year-to-date low of just above $60,000 recorded in early February.

Market data showed heavy liquidation activity. Nearly $500 million in leveraged liquidations were recorded for bitcoin on Wednesday, with long positions accounting for about $437 million of that total. Across the wider crypto market, liquidations exceeded $1 billion for the second consecutive day, with approximately $945 million in long positions and $193 million in short positions closed.

Spot bitcoin exchange-traded funds registered net outflows of about $519 million on June 2, extending a streak of daily redemptions to 12 days. ETF withdrawals coincided with the liquidation activity in derivatives markets.

A corporate bitcoin treasury firm identified as Strategy filed a regulatory notice disclosing the sale of 32 bitcoins, about $2.5 million at current prices, to fund preferred stock dividends. The company had previously presented a long-standing stance of not selling its treasury holdings. After the disclosure, Strategy’s executive chairman posted a reassurance on the social platform X.

Reports of defensive maritime engagements between U.S. Navy vessels and Iranian forces near the Strait of Hormuz also coincided with the sell-off. Those reports occurred as some investors shifted capital toward traditional safe havens such as gold.

The combination of ETF outflows, the disclosed corporate sale and concentrated derivative liquidations produced a rapid period of selling that removed earlier monthly gains. Trading venues reported increased margin calls and single-day liquidation volumes during the drop.