Bitcoin suffered its steepest weekly decline since the FTX collapse in November 2022, falling below the $60,000 mark last week. Over a seven-day period, the leading cryptocurrency lost 16 percent of its value. At the time of reporting, Bitcoin traded around $61,500, remaining more than 50 percent below its all-time high above $126,000.
Geopolitics accelerate selling pressure
The selling intensified on June 9 after the United States Central Command announced military operations against Iran, citing “legitimate defense.” Following this announcement, Bitcoin quickly slid 3 percent to reach $61,766. According to the statement, these operations responded to the downing of a US Apache helicopter near the Strait of Hormuz.
Former US President Donald Trump posted on Truth Social, asserting that the US needed to respond to the attack. Iranian officials, meanwhile, rejected claims that the helicopter had been deliberately targeted.
CoinGlass data showed that over the subsequent 24 hours, $136 million worth of long positions in the cryptocurrency market were liquidated, most of which were Bitcoin trades. This underlined the depth of the market’s volatility after the military developments.
Key technical levels and institutional moves are in focus
Further amplifying negative market sentiment was the partial sale of Bitcoin reserves by Michael Saylor’s company Strategy. Although the firm bought another 1,550 BTC worth about $101 million shortly afterward, this move disrupted the prevailing “hold” narrative in the market. Strategy has become known in recent years for maintaining significant Bitcoin holdings on its balance sheet.
Bitcoin also dipped below its 200-week moving average last week—a level closely monitored by market participants. According to some analysts, breaching this point could signal a shift into a weaker market phase and increased vulnerability for BTC.
Glossary: The realized price is an on-chain indicator reflecting the average cost at which all Bitcoins last moved across the network. Some analysts use this metric as a reference for long-term support or cycle bottoms.
According to Griffin Ardern, co-founder of Primal Fund, the optimism typically seen in long-term option positions near market bottoms has yet to emerge, suggesting further downside could be ahead.
Retail buys more, whales reduce exposure
Santiment data highlighted a growing divergence between small and large Bitcoin holders. Over the past two weeks, wallets holding less than 0.01 BTC increased their positions by 0.36 percent. In contrast, wallets with between 10 and 10,000 BTC reduced their holdings by 0.20 percent during the same period.
| Wallet Group | Period | Change |
|---|---|---|
| Under 0.01 BTC | Last 2 weeks | +0.36% |
| 10 to 10,000 BTC | Last 2 weeks | –0.20% |
Analyst Ted Pillows noted that in previous cycles, Bitcoin market bottoms have not formed above the realized price, which currently stands at $53,000. He predicted that BTC might retreat to the $50,000–52,000 range before establishing a cycle low.
Spot Bitcoin ETFs traded in the US also continued to see outflows. For 13 consecutive trading sessions, net withdrawals have maintained a steady pace, with total outflows now exceeding $5.5 billion.
