Bitcoin Suffers Year’s Strongest Waterfall-Style Decline. Will It Next Drop to the $60,000 Mark?

TradingKey - During the Asian trading session on June 4, Bitcoin continued its multi-day slump, briefly dropping below the $62,000 mark to $61,338. As of press time, Bitcoin was trading at $63,844, with its intraday decline narrowing. The 24-hour drop was approximately 3.6%.

Since late May, Bitcoin has fallen continuously from a high of nearly $78,000, with a cumulative decline of over 19%.

According to CoinGlass data, total cryptocurrency liquidations across the network exceeded $1.78 billion in the past 24 hours, with Bitcoin liquidations accounting for over 70% of the total.

The market generally attributes this slump to the resonance of three major factors.

MicroStrategy, the world's largest corporate Bitcoin holder, disclosed on June 1 that it sold 32 Bitcoins at an average price of $77,135 between May 26 and May 31, cashing out approximately $2.5 million.

This marks the company's first reduction in holdings for dividend payment purposes since its tax-related transactions in December 2022. The "never sell" narrative long promoted by founder Michael Saylor has been substantively broken for the first time, impacting market sentiment.

Meanwhile, U.S. spot Bitcoin ETFs are experiencing their longest streak of net redemptions in history. Data shows that during the 12 trading days from May 15 to June 2, cumulative net outflows totaled approximately $3.97 billion, with total net assets shrinking from about $104.3 billion to $85 billion; BlackRock's IBIT even recorded its largest single-day net outflow since listing, at $528 million.

Macroeconomic factors are also exerting pressure. Cleveland Fed President Beth Hammack publicly stated that the Federal Reserve may soon need to resume interest rate hikes if inflation persists. Data from the Chicago Mercantile Exchange shows that the probability of a rate hike in July has risen to approximately 6.3%, the 10-year U.S. Treasury yield has climbed back above 4.45%, and the probability of a rate hike by year-end exceeds 50%. The high-interest-rate environment directly suppresses the valuation of crypto assets.

Bitcoin has now closed lower for three consecutive quarters, marking its longest losing streak since 2022. Analysts noted that the key support level at $65,000 has been lost, and the price may test the $60,000 psychological level next.