Key Highlights
- Bitcoin tumbled to $65,485, marking its weakest position since the final days of March, with a single-day decline of approximately 6%.
- Strategy Inc offloaded 32 BTC during the May 26–31 period, intensifying concerns in an already weakened market.
- Bitcoin ETFs experienced close to $1 billion in capital withdrawals across Monday and Tuesday — extending their outflow streak to 12 consecutive days.
- Approximately 277,000 traders faced liquidations within a 24-hour window, with aggregate liquidations totaling $1.83 billion.
- Fresh US-Iran military confrontations have heightened market anxiety, while ceasefire negotiations remain at an impasse.
Bitcoin experienced a dramatic downturn on Wednesday, plummeting to its weakest price point in more than two months. The leading cryptocurrency by market capitalization declined by as much as 6% to reach $65,485, a threshold last observed in late March 2026.
The downturn comes on the heels of what had already been the most significant single-session decline since early February. During Tuesday’s trading, Bitcoin surrendered over $4,500 in value within a single day, piercing through critical support thresholds.
According to CoinGlass analytics, approximately 277,000 traders experienced forced liquidations during the preceding 24-hour period. Aggregate liquidations climbed to $1.83 billion, with over 90% representing long positions, predominantly concentrated in Bitcoin and Ether.
Cryptocurrency analyst Daan Crypto Trades highlighted on X that Bitcoin’s daily Relative Strength Index has descended to a level that has historically aligned with market floor formations. “It got here quickly due to the relentless and quick sell-off we’ve seen the past 2 weeks,” he wrote, observing that the approximately 10% plunge across just two days represented an unusually rapid decline. He acknowledged these indicators aren’t definitive signals but suggested “these levels do generally mean it is worth it to start paying attention again.”
Corporate Divestment Intensifies Market Pressure
Strategy Inc, recognized as the largest institutional Bitcoin holder, revealed it divested 32 BTC during the May 26 through May 31 timeframe at an average sale price of $77,135 per token, generating $2.5 million in proceeds. Although modest compared to its comprehensive portfolio, the transaction unsettled an already vulnerable marketplace.
Strategy’s stock price declined to nearly a two-month nadir following the announcement. The disclosure coincided with Bitcoin ETFs already experiencing substantial capital flight, with approximately $1 billion in withdrawals throughout Monday and Tuesday combined — representing 12 uninterrupted days of net outflows, accumulating to over $3 billion across three weeks.
Andri Fauzan Adziima, research lead at Bitrue Research Institute, informed Cointelegraph the decline stems primarily from “leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure Iran news, but it amplifies the fear.” He anticipates volatile consolidation, identifying genuine support in the $64,000–$65,000 range.
Middle East Military Actions Dampen Market Sentiment
Geopolitical friction has contributed to the pessimistic atmosphere. The United States persisted with military operations against Iran, with US Central Command verifying it neutralized numerous Iranian ballistic projectiles and unmanned aerial vehicles while executing strikes on Qeshm Island.
Iran deployed missiles targeting regional allies including Kuwait and Bahrain, though all projectiles failed to strike their designated objectives, per CENTCOM statements.
A two-month cessation of hostilities between the United States and Iran remains operational, but discussions regarding its extension and removing the Strait of Hormuz blockade have yielded no breakthrough. Iran’s Tasnim news agency stated the nation would suspend diplomatic talks with the US until Israel ceased operations against Lebanon.
President Trump contested those accounts via Truth Social, asserting conversations between both parties had persisted on a daily basis.
Bitcoin clawed back some losses from its session lows and was exchanging hands near $66,855 during early Wednesday morning Eastern Time.
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