Key Highlights
- BTC plummeted to $65,485, marking its weakest performance since the final days of March, with a daily decline of approximately 6%.
- Strategy Inc offloaded 32 BTC during the May 26–31 period, triggering additional concern in an already weakened market.
- Bitcoin exchange-traded funds experienced close to $1 billion in withdrawals across Monday and Tuesday — extending an unprecedented 12-day outflow streak.
- Approximately 277,000 market participants faced liquidation within a 24-hour window, totaling $1.83 billion in forced position closures.
- Escalating US-Iran military operations have intensified investor anxiety, while diplomatic efforts to extend the ceasefire remain deadlocked.
The leading cryptocurrency experienced a dramatic downturn on Wednesday, plunging to price levels unseen for more than eight weeks. Bitcoin’s value collapsed by as much as 6% to reach $65,485, marking territory last visited in the closing days of March 2026.
The crash extends what had already become the most significant daily decline observed since early February. Tuesday witnessed Bitcoin surrendering over $4,500 in value within a single trading session, demolishing crucial technical support zones.
According to CoinGlass analytics, roughly 277,000 market participants experienced forced liquidations over the preceding 24-hour period. Aggregate liquidation volumes climbed to $1.83 billion, with long positions accounting for over 90% of the casualties, predominantly concentrated in Bitcoin and Ethereum.
Market analyst Daan Crypto Trades observed on X that Bitcoin’s daily Relative Strength Index has descended to territory that has traditionally marked cyclical bottoms. “It got here quickly due to the relentless and quick sell-off we’ve seen the past 2 weeks,” he explained, emphasizing that the approximately 10% correction compressed into just 48 hours represented an unusually rapid deterioration. While acknowledging these indicators aren’t foolproof, he suggested “these levels do generally mean it is worth it to start paying attention again.”
Corporate Selloff Intensifies Market Anxiety
Strategy Inc, which maintains the largest institutional Bitcoin position globally, revealed it liquidated 32 BTC between May 26 and May 31 at an average execution price of $77,135 per unit, generating $2.5 million in proceeds. Despite representing a minimal fraction of the company’s overall cryptocurrency reserves, the transaction unnerved an already vulnerable marketplace.
Strategy’s stock price declined to near-two-month lows following the announcement. The revelation came as Bitcoin exchange-traded products were experiencing significant capital flight, with approximately $1 billion departing on Monday and Tuesday combined — representing the 12th consecutive trading session of net withdrawals, accumulating to more than $3 billion over the three-week period.
Andri Fauzan Adziima, who leads research at Bitrue Research Institute, explained to Cointelegraph that the downturn stems primarily from “leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure Iran news, but it amplifies the fear.” His outlook anticipates volatile consolidation patterns, with substantial support anticipated in the $64,000–$65,000 range.
Middle East Military Operations Compound Negative Sentiment
Escalating geopolitical confrontations have contributed to the prevailing bearish atmosphere. US military forces continued operations against Iranian targets, with US Central Command verifying it intercepted numerous Iranian ballistic projectiles and unmanned aerial vehicles while executing strikes on Qeshm Island facilities.
Iranian forces launched missile attacks directed toward neighboring nations including Kuwait and Bahrain, though CENTCOM confirmed all projectiles failed to strike their designated targets.
A two-month cessation of hostilities between Washington and Tehran remains technically active, but diplomatic discussions regarding its extension and resolution of the Strait of Hormuz maritime blockade have stalled without progress. Iran’s state-affiliated Tasnim news organization indicated the nation would suspend negotiations with the United States pending Israel’s cessation of military operations in Lebanon.
President Trump contested those characterizations through Truth Social, asserting that bilateral communications between American and Iranian representatives had maintained daily continuity.
Bitcoin managed to claw back some losses from its session lows and was changing hands near $66,855 during early Wednesday morning Eastern Time trading.
