A major collapse of cryptocurrencies.. liquidation of $1.5 billion and Bitcoin below 63,000
The cryptocurrency market has witnessed one of the most violent financial shocks of the current year, following a sharp and sudden decline in the price of Bitcoin, which led to a huge wave of liquidations worth more than $1.5 billion in just 24 hours, in what observers have described as "Black Thursday" in the crypto world.
The French economic website "01.net" reported that the world's most prominent digital currency fell sharply during the night of June 3 and 4 to below the barrier of $62,000, recording $61,410, its lowest level in 4 months.
The French report explained that the price stabilized again near the levels of $62,000 despite recording a subsequent slight recovery of about $64,000, so that the currency is far from its historical peak of more than $120,000 in October 2025, recording a loss of more than 12% of its value in one week.
The decline triggered a widespread domino effect in the market, with more than $1.5 billion of long positions liquidated, causing more than 200,000 traders to lose their bets on rising prices.
Sharp decline in institutional demand
This sudden drop was mainly linked to the escalation of geopolitical tensions in the Middle East, especially with the intensification of the military confrontation between Israel and Iran, the deaths in Lebanon, and the frequent security incidents in the Strait of Hormuz.
These developments have called on investors to accelerate their escape from high-risk assets and move towards traditional safe havens such as gold and government bonds, stressing that Bitcoin is still seen as a high-risk speculative asset and the first to be affected by crises, despite attempts to sometimes describe it as "digital gold."
These field pressures coincided with a clear decline in the appetite of institutional investors in the United States, as Bitcoin exchange-traded funds (ETFs) witnessed a huge wave of withdrawals amounting to about $5 billion in just 3 weeks, of which the month of June received nearly $1 billion.
The decision of Micro Strategy, known for its historical support for Bitcoin, to sell 32 Bitcoins in an unprecedented move that contradicts its stated strategy of not selling at all, and despite the small actual size of the deal, it raised deep psychological concerns among investors and contributed to deepening the current downtrend.
Market volatility and anticipation of economic indicators
This sharp sell-off is a reminder of the crypto market's hypersensitivity to global political and economic changes, especially after the big price boom it recorded in the fourth quarter of 2025.
These developments put traders in a state of intense anticipation for the upcoming technical and geopolitical indicators, amid fears that the continued withdrawal of institutional liquidity and the escalation of the regional conflict will cause the breaking of new technical support levels, which could open the door to a deeper downturn if markets are unable to regain the confidence of major investors and backing companies in the coming period.