The beginning of June turned out to be painful for the crypto market. Bitcoin fell to nearly $63,000, and the volume of liquidations in 24 hours exceeded $1.1 billion.
Mass position closures, capital outflows from ETFs, and worsening investor sentiment once again made the market talk about a possible further decline in BTC.
Bitcoin (BTC) price dynamics. Source: CoinMarketCap.
Bitcoin Closes Day at Lowest Level Since February
The drop of BTC to $63,092 was costly for traders using leverage. The sharp downward move triggered a series of automatic liquidations and accelerated the sell-off.
Market participants who expected further growth suffered the most. Their positions began to close en masse as the price fell.
In the past 24 hours, exchanges liquidated trades worth more than $1.1 billion, according to CoinGlass. Almost all of this volume was in long positions.
Crypto market liquidations on June 3, 2026. Source: CoinGlass.
What Triggered the Market Crash
The sell-off was not caused by a single factor, but by several events that coincided in time.
Additional pressure on risk assets came from ongoing tensions around Iran. At the same time, the market reacted to reports of outflows from spot bitcoin ETFs, which intensified selling both in the crypto market and on traditional financial platforms.
Investors also reacted negatively to actions by Strategy. The company sold a small portion of its bitcoins to meet dividend obligations. This was the first BTC sale by Strategy since the FTX collapse in 2022.
The sale volume was small, but the precedent itself was more important for the market. Many traders noted that Strategy took this step for the first time in several years.
At the same time, investors were preparing for the release of macroeconomic statistics from the US and partially locking in profits after the previous rally.
As a result, market sentiment deteriorated significantly. The Crypto Fear & Greed Index returned to the extreme fear zone, and sellers got an extra reason to put pressure on the price.
Crypto market Fear and Greed Index. Source: Alternative.me.
What Will Happen Next With the Bitcoin Price
The entire crypto market, not just bitcoin, took a hit.
Ethereum temporarily dropped below $1,800. Solana and several other major altcoins lost even more in percentage terms. XRP also hit new lows for the year during the sell-off.
Such market behavior shows that investors were massively reducing risk positions. During such moves, altcoins usually react more sharply than bitcoin due to higher volatility.
Price dynamics of the largest cryptocurrencies. Source: CoinMarketCap.
Market forecasts now differ significantly. Some participants believe the decline is not over yet and that bitcoin may test the $60,000 area.
The $64,000 area remains one of the main points to watch for the market. Losing this level could significantly worsen buyer sentiment.
At the same time, traders’ attention is focused not only on the BTC chart. In the coming weeks, new economic data from the US and the overall situation on financial platforms may affect the market.
Analyst JO believes it is too early to talk about the end of the correction. He noted that bitcoin closed the day at its lowest level in several months, and the market has not yet shown signs of a sustainable reversal.
The trader noted that price pressure remains, and key support levels are below current values. Against this backdrop, he considers talk of the correction ending to be premature.
BTC chart with marked support zones. Source: X / Jesse Olson.
According to Jesse Olson, the BTC chart is still developing in a bearish scenario. After a local rebound, buyers failed to maintain momentum, and the attempt to resume growth ended with a new decline.
The trader notes that the price has already fallen below several important levels, and the RSI indicator previously gave a sell signal. All this, in his assessment, leaves the market under pressure and does not provide grounds to talk about the end of the correction.
Bearish divergence on BTC. Source: X / Jesse Olson.
However, there are also those who see the current drop as a regular correction within a bull cycle.
They remind that in recent years, bitcoin has repeatedly experienced deeper pullbacks, after which it returned to growth.
Another bullish argument is related to liquidations. After mass position closures, the market has become less overheated, which means the space for a new upward impulse is gradually increasing.
Trader Castillo Trading draws parallels with the situation at the end of 2022. He suggests that the market may remain in a range for several more months, after which it could test liquidity areas around $56,712, $55,248, and $54,343.
If this scenario plays out, a long-term bottom could form there. After that, the analyst expects an upward trend to resume and an attempt to update the all-time high.
According to him, this model previously seemed unlikely, but recent price moves make it look more and more like the events of the previous cycle.
Current BTC scenario. Source: X / Castillo Trading.
Comparison with the 2022 bottom. Source: X / Castillo Trading.
Despite the sharp drop, it is too early to talk about full market capitulation. Some traders have already started looking for entry points, while others prefer to wait for a clearer picture. Now the focus is less on loud forecasts and more on price behavior in the coming days. The market has already shown several times that it can sharply change direction precisely when most participants are confident in the continuation of the trend. Therefore, the nearest reaction of buyers at current levels may be more important than any expectations and long-term scenarios.
