Bitcoin experienced its steepest weekly decline since the FTX collapse in November 2022, sliding below the $60,000 threshold last week. The world’s largest cryptocurrency lost 16 percent over seven days. At last check, BTC was trading near $61,500, remaining more than 50 percent below its all-time high over $126,000.
Geopolitical tensions fuel selling pressure
The selloff accelerated on June 9 after the US Central Command announced military operations against Iran, citing “legitimate defense.” Bitcoin quickly fell another three percent following the statement, reaching as low as $61,766. According to the US, the military response targeted the area near the Strait of Hormuz after an American Apache helicopter was brought down.
Former US President Donald Trump argued on Truth Social that the US needed to respond to the attack, while Iranian authorities denied intentionally targeting the helicopter.
CoinGlass reported that $136 million in long positions were liquidated in the crypto market during the 24 hours following the military announcement, with Bitcoin trades accounting for most of the forced closures.
Technical thresholds and institutional moves
Another factor contributing to Bitcoin’s weakness was a rare partial sale from Michael Saylor’s company, Strategy, which had long been known for stockpiling BTC. Although Strategy quickly acquired another 1,550 BTC worth around $101 million, this move unsettled investors expecting institutions to maintain strong “hold” sentiment.
Bitcoin also slipped below its 200-week moving average last week. Observers closely watch this level, and some analysts interpret the breach as a signal that the market may be entering a weaker phase.
Glossary: Realized price is an on-chain indicator representing the average acquisition cost of all Bitcoins at the point of their last movement. Analysts often use this measure to assess long-term support and determine cycle bottoms.
Primal Fund co-founder Griffin Ardern noted that the optimistic positioning typically seen at market bottoms in long-term options is not evident yet, warning that the downward trend could continue in the short term.
Retail buying up, whales reducing exposure
Data from Santiment revealed a clear divide between small and large Bitcoin holders. Over the past two weeks, addresses holding less than 0.01 BTC increased their holdings by 0.36 percent, while wallets with 10 to 10,000 BTC reduced their balances by 0.20 percent during the same period.
| Wallet group | Period | Change |
|---|---|---|
| Below 0.01 BTC | Last two weeks | 0.36% increase |
| 10 to 10,000 BTC | Last two weeks | 0.20% decrease |
Analyst Ted Pillows emphasized that in previous cycles, Bitcoin’s bottoms have never formed above the realized price, which currently stands at $53,000. According to Pillows, BTC may slide to the $50,000–$52,000 range before finding a cyclical floor.
US-listed spot Bitcoin ETFs also extended their streak of outflows. The funds saw 13 consecutive trading days of net exits, with the total surpassing $5.5 billion.
