Why Bitcoin Just Crashed Below $64K and Why It’s Not Over Yet

Key Takeaways 

• Bitcoin fell below $64,000, down about 13% in a week and at its lowest since April.
• US spot ETFs have logged a record 10-day outflow streak, shedding over 40,000 BTC (roughly $3 billion) since May 20.
• Strategy sold Bitcoin for the first time in nearly four years, and $1.8 billion in long liquidations on June 3 accelerated the drop.
• Analysts see $65,000 as critical support; a break opens the path to $60,000, with some forecasting a deeper low later in 2026.

Bitcoin fell below $64,000 on Thursday, extending a selloff that has erased about 13% of its value in a week and pushed the largest cryptocurrency to its lowest level since April. 

The drop is not a single-day shock but the product of a sustained institutional exit that has been building for nearly two weeks, and the forces behind it have not yet run their course.

ETF Outflows Hit a Record Streak

The clearest pressure is coming from spot Bitcoin exchange-traded funds. US-listed funds have now posted net outflows for a third consecutive week, with roughly $1.67 billion withdrawn in the latest week and more than $4.2 billion pulled over the three-week stretch, according to data cited by CoinShares and Galaxy. 

Since May 20, spot ETFs have shed more than 40,000 Bitcoin, worth close to $3 billion, across ten straight trading days. This is the longest run of ETF withdrawals on record, and the steady pace matters more than the headline number. 

Because ETF issuers must hold physical Bitcoin to back their shares, sustained redemptions force continuous selling into the market rather than a one-time hit that buyers can absorb.

Strategy Breaks Its Buying Streak

The second driver is corporate selling. Strategy, the company formerly known as MicroStrategy and the most closely watched corporate Bitcoin holder, sold Bitcoin for the first time in nearly four years.

The amount was small relative to its holdings, but the signal was not. 

Traders read the sale as a possible shift in the company’s treasury strategy, and Strategy funds much of its Bitcoin buying through preferred-share programs that depend on favorable market conditions. If those conditions tighten, one of the market’s largest standing buyers becomes a smaller one.

Leverage Accelerates the Fall

Leverage has amplified both forces. The June 3 decline triggered over $1.1 billion in forced liquidations in a single day, the largest since February, with long positions making up $1.35 billion of that total. 

When leveraged longs are liquidated, the exchange automatically sells their collateral, which pushes prices lower and triggers further liquidations. That mechanical selling is still working through the system.

Former Fidelity quant and COO of Altura DeFi, Matthew Pinnock, noted that with much of that excess positioning now cleared, the next phase of price action is likely to depend more on spot demand, ETF flows, and macro developments such as interest rate expectations and geopolitical risk than on leveraged futures activity. He added:

“A large amount of speculative positioning had built up during the recent rally, leaving the market vulnerable to a sharp reversal. Once risk sentiment deteriorated, more than $1.8 billion in leveraged positions were liquidated in 24 hours, including over $1.5 billion in longs, accelerating the selloff across derivatives markets. The speed of the move, combined with falling open interest and negative funding rates, suggests this was primarily a leverage-driven unwind rather than a fundamental shift in the long-term outlook for crypto,” Pinnock noted.

CryptoQuant Flags Worst Bitcoin Holder Capitulation of the Year

According to CryptoQuant analyst MorenoDV, short-term Bitcoin holders recorded their most severe capitulation event of the year, with roughly 53,800 BTC sent to exchanges at a loss over the past 24 hours, while profit-taking activity virtually disappeared.

The analyst noted that the imbalance reflects panic-driven selling from recent buyers who entered near market highs and are now exiting positions after Bitcoin’s sharp decline.

Historically, such spikes in loss-driven inflows have coincided with local capitulation phases, where weaker hands sell to longer-term investors.

However, MorenoDV cautioned that the signal alone does not confirm a market bottom, as selling pressure could persist if exchange inflows remain elevated in the coming days.

Why Analysts Won’t Call a Bottom

This is why analysts are not calling a bottom yet.

Crypto analyst Rekt Capital warned that Bitcoin’s recent bounce from its 50-month exponential moving average may be short-lived, arguing that the reaction is likely to remain limited despite the key support holding for now.

The analyst expects Bitcoin to eventually break below the long-term EMA and continue its broader downward trajectory, suggesting the current rebound may not mark the end of the ongoing bear market.

Benjamin Cowen has placed meaningful probability on a new cycle low in 2026, with October as his base case, citing the simultaneous distribution by ETFs, whales, and long-term holders. 

What would turn it around

There are conditions that would change the picture. Past episodes of aggressive long liquidations have occasionally marked local bottoms, and a recovery above $66,000 on strong volume, helped by softer US inflation data or dovish signals from the Federal Reserve, would suggest support is holding. Upcoming labor market figures could shift rate expectations and ease pressure on risk assets.

Until then, the selling pressure that drove this crash remains in place. ETF outflows have not reversed, Strategy’s intentions are unclear, leverage is still unwinding, and the macro backdrop offers no clear catalyst for buyers to step in. 

The market is closer to its support than its resistance, and the path of least resistance, for now, points down.

About the Author

Dr. Guneet Kaur

Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.

Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.

[email protected] LinkedIn