Why did Bitcoin fall below $66,000?

Bitcoin fell below $66,000 as investors reacted to escalating tensions between the US and Iran, triggering a broader risk-off move across financial markets. Analysts said geopolitical concerns amplified selling pressure that was already building from technical weakness and leveraged positions.

How much did Bitcoin drop during the sell-off?

Bitcoin fell to around $65,385, its lowest level since late March. The cryptocurrency also recorded its largest daily decline since February, losing more than $4,500 in a single trading session.

Were geopolitical tensions the main reason for Bitcoin's decline?

Not entirely. Bitrue Research Institute analyst Andri Fauzan Adziima said leveraged liquidations, ETF outflows and technical breakdowns were the primary drivers, while the US-Iran conflict intensified market fear and accelerated selling.

How large were crypto liquidations during the market crash?

According to CoinGlass data, approximately 277,000 traders were liquidated over 24 hours. Total liquidations reached around $1.83 billion, with more than 90% coming from long positions betting on higher prices.

Why were long traders hit so hard?

Many traders were using leverage to bet on rising crypto prices. When Bitcoin broke key support levels, exchanges automatically liquidated leveraged positions, creating additional selling pressure and accelerating the decline.

How much value was wiped from the crypto market?

The sell-off erased roughly $150 billion from the total cryptocurrency market capitalisation. Bitcoin and Ethereum accounted for the majority of liquidation losses as traders rushed to reduce risk exposure.

What happened between the US and Iran?

The latest market volatility followed reports of renewed military activity in the Middle East. US Central Command said it intercepted Iranian missiles and drones before conducting what it described as self-defence strikes in response to attempted attacks.

Why do geopolitical conflicts affect Bitcoin?

Geopolitical events often increase uncertainty across financial markets. During periods of heightened risk, investors may reduce exposure to volatile assets such as cryptocurrencies and move toward cash, government bonds or other perceived safe havens.

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Bitcoin sinks below $66K amid US-Iran tensions

Written by Mahathir BayenaPublished Jun. 3 2026Last Updated Jun. 3 2026

Bitcoin dropped below $66,000 on Wednesday, reaching its lowest level in more than two months as escalating tensions between the United States and Iran triggered a broad sell-off across risk assets.

The cryptocurrency fell to $65,385 on Coinbase, extending losses after its largest daily decline since February, with Bitcoin shedding more than $4,500 during Tuesday's trading session.

According to CoinGlass data, roughly 277,000 traders were liquidated over the past 24 hours, resulting in approximately $1.83 billion in total liquidations, with more than 90% stemming from long positions in Bitcoin and Ethereum.

Bitrue Research Institute research lead Andri Fauzan Adziima said the decline was driven primarily by leveraged liquidations, exchange-traded fund outflows and technical breakdowns, while developments involving Iran intensified negative market sentiment.

The sell-off erased around $150 billion from the total cryptocurrency market capitalisation as investors reacted to reports of renewed military activity involving US forces and Iranian missile launches across the Middle East.

US Central Command said it intercepted multiple Iranian missiles and drones before conducting what it described as self-defence strikes on Qeshm Island following attempted attacks against US interests in the region.

Adziima said Bitcoin could experience a period of volatile consolidation near the $64,000 to $65,000 range, adding that any easing of geopolitical tensions or improvement in broader macroeconomic conditions could trigger a sharp recovery in crypto markets.

At the time of reporting, Bitcoin price was $67,126.16.