Bitcoin Drops 7% Below $66K After US-Iran Strikes
Bitcoin price fell 7% on June 3, breaking key support and hitting a nine-week low. The selloff accelerated after the US and Iran launched fresh strikes while ceasefire talks reportedly stalled.
Bitcoin dropped to about $65,385 on Coinbase (early June 3), the lowest level since late March. The move followed the largest daily drop since Feb. 5, when BTC shed more than $4,500 in 24 hours.
Derivatives data highlights forced selling: CoinGlass estimates roughly 277,000 traders were liquidated in the past 24 hours, totaling about $1.83 billion. Over 90% of liquidations were long positions, mainly in Bitcoin and Ether (ETH).
Analyst commentary suggests the trigger is not purely geopolitical. Bitrue Research Institute said the decline is driven more by leveraged liquidations, heavy ETF outflows, and a technical breakdown—while the US-Iran headline flow amplifies “fear.” Near-term support is expected around $64,000–$65,000, and any de-escalation or macro rebound could spark a sharp relief rally.
Macro/geopolitical context: US Central Command said it defeated Iranian ballistic missiles and drones and conducted self-defense strikes on Qeshm Island. Iran’s reported stance also included pausing conversations with the US until Israel stops attacking Lebanon.
For traders, the key takeaway is that Bitcoin is trading under technical pressure with derivative-driven volatility, making risk management and levels at $66K and $64K–$65K especially important.
Bearish
This news is bearish because the immediate downside driver for Bitcoin is a combination of (1) leveraged derivatives liquidation and (2) broader risk-off sentiment amplified by US–Iran strike headlines. When ~90% of liquidations are longs and totals reach about $1.83B, the market often experiences momentum selling that can overshoot support levels before stabilizing.
Bitcoin’s technical breakdown under $66K matters: the article points to real support around $64K–$65K. Historically, similar “support break + high long liquidation” setups tend to produce sharp, short-term volatility—often a cascade down first, then consolidation. Relief rallies can occur quickly if de-escalation news hits, but they may fade if ETF outflows and macro uncertainty persist.
Short-term: expect choppy trade, fast swings, and potential further flushes if $64K–$65K fails. Traders may focus on liquidation heat, funding/positioning, and confirmation signals for any bounce.
Long-term: if ceasefire talks truly resume and ETF flows stabilize, the market can re-rate toward more constructive levels. But as long as geopolitical risk and ETF outflows remain unresolved, the bias stays cautious, favoring sellers or defensive positioning over aggressive longs.