Bitcoin Falls to $66,346 After $1.35B Long Liquidations

Bitcoin fell to $66,346 on June 2 after more than $1.35 billion in long positions were liquidated within 24 hours, pushing the price down more than 6% and erasing roughly $7,000 in value in the first days of June.

Liquidation trackers and exchange records show about $1.35 billion in long-position liquidations and roughly $136 million in short-position liquidations. Separate tallies put the value of leveraged positions erased at about $800 million, with long bets accounting for nearly $767 million. Bitcoin’s market capitalization dipped to just under $1.35 trillion, and the total crypto market cap fell below $2.5 trillion for the first time since April 13.

Market participants pointed to different factors. Some traders flagged a sale of 32 bitcoins by an entity identified as Strategy and noted critics argued the sale conflicted with the firm’s previously stated buy-only stance. Other traders described that sale as too small to explain the scale of the decline and attributed the price drop to wider market conditions.

Bit Paine, executive chairman of Vibes Capital Management, wrote on X that the decline reflects “a structural correction within a bear market” and added that developments outside crypto, including stalled international negotiations and capital rotating into artificial intelligence and space ventures, have weighed on sentiment.

Crypto commentator David Gokhshtein predicted further downside before a recovery. Eric Balchunas, a senior ETF analyst, commented that bitcoin’s price has become closely tied to ETF flows and to the narrative around MicroStrategy’s holdings.

K33 Research projected lower trading volume, thinner liquidity and a downward price drift from June through August as retail and institutional traders reduce activity over the summer. Analysts warned that lower participation can make markets more vulnerable to sharp moves when large orders hit order books.

Traders noted that automated margin calls and forced sales amplified losses as falling prices triggered liquidation of leveraged long positions. Market participants said they will watch trading volumes, ETF flows and on-chain metrics for signs of renewed buying or deeper weakness in the coming weeks.