Bitcoin Drops 6% Below $67K, Crypto Liquidations Top $1B
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
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Gotrade News - Bitcoin dropped roughly 6% below $67,000 on Tuesday (6/3), hitting its lowest level since April 5. Crypto liquidations breached $1 billion within hours, the largest wave since February according to CoinGlass data.
The selloff was driven by escalating Iran geopolitical tensions and aggressive whale selling that unwound long positions. Bitcoin's inflation-hedge narrative has weakened further, contrasting sharply with the resilience of US equities and the ongoing AI-led rally.
Key Takeaways
Bitcoin fell about 6% below $67,000, roughly 50% under its all-time high of $126,000 set in October.
Crypto market liquidations topped $1 billion in hours, the biggest single-session wipeout since February.
Crypto-linked equities such as IBIT, MSTR, and COIN face renewed pressure as sentiment sours.
What Triggered the Selloff
According to Bloomberg Technoz, Bitcoin slid roughly 6% below $67,000 on Tuesday. The move marked the cryptocurrency's lowest level since April 5 this year.
The decline was triggered by renewed geopolitical concerns surrounding Iran. Large whales also closed long positions, deepening selling pressure across both spot and derivatives markets.
CoinGlass data showed crypto liquidations exceeded $1 billion within a matter of hours. That volume marked the largest cascade since February.
Investors in crypto-proxy equities such as Strategy Inc (MSTR) turned cautious on the move. Exchange operator COIN and spot Bitcoin ETF IBIT also remain sensitive to swings in crypto trading volume.
Bitcoin's sharp decline stood in stark contrast to the strength in US equities. AI-related names and blue chips rallied on signals of de-escalation across several geopolitical fronts.
Crypto derivatives markets registered negative funding rates following the selloff. The shift reflects more aggressive short positioning heading into the Asia session.
As reported by Bloomberg Technoz, Bitcoin has corrected about 36% over the past year. The price briefly slipped below $70,000 this week, its lowest reading since 2025.
Institutional investors have pulled capital from spot Bitcoin ETF products in recent weeks. The outflows signal waning conviction in crypto as a portfolio allocation among large allocators.
Geopolitical tensions have steered demand toward traditional safe-haven assets instead. Gold and US Treasuries have become the preferred destinations for global investors this week.
Bitcoin's positioning as an inflation hedge has weakened even as fresh inflation concerns emerge. Surging electricity demand from AI data center expansion has become a key catalyst for those worries.
Per reporting from Vildana Hajric of Bloomberg News, Bitcoin's role as an alternative asset is now under question. The minus 36% annual performance has reinforced near-term skepticism among investors.
The pressure on Bitcoin prices clouds the outlook for crypto-proxy stocks listed in the US market. Elevated volatility has pushed retail traders to become more selective about adding exposure.
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