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Bitcoin dropped below $65,000 on June 4, 2026, setting off a rapid flurry of liquidation that wiped out more than $1.6 billion across major exchanges. Many over-leveraged traders lost their positions, especially on the long side.
Data from CryptoQuant shows this was a clear capitulation event for short-term holders (STH). In the last 24 hours, 53,800 BTC moved to exchanges entirely from coins held at a loss, while profit-taking inflows fell to zero. This puts the 100% loss-driven flow as the most extreme reading of the year. Many buyers who entered near recent highs are now underwater and selling into weakness.
Bitcoin has reached the 50-Month EMA (purple)
And indeed price is now bouncing from here but this overall reaction is likely to be limited
Over time, Bitcoin is likely to breakdown from this EMA and continue macro downside in this Bear Market#BTC #Crypto #Bitcoin https://t.co/AgZ5hC3zw9 pic.twitter.com/KYV11MFi9D
— Rekt Capital (@rektcapital) June 3, 2026
The sell-off was further fueled by multiple sources of supply pressure. Strategy sold a portion of its Bitcoin holding, for the first time since 2022. This saw the company’s shares fell. Mt. Gox also moved $739m worth of Bitcoin to Bitstamp, as it continues to repays creditors.
Analysts at Rekt Kapital believe Bitcoin reaching the 50-Month EMA is a key milestone that’s bound to happen in a bear market. But the important question is whether it stays here or bounces. If Bitcoin price is to bounce from here, as it seems likely to do, the overall reaction is likely to be limited
$BTC 200-week moving average tagged! ✅
This is one of those key milestones that occurs in every bear market.
Does it bounce here or keep dropping? My guess is BTC has a decent chance of bouncing soon as it's been dropping pretty steeply. But honestly it's anyone's guess in the… pic.twitter.com/VuNaD0HRlF
— 𝙲𝚘𝚕𝚒𝚗 𝚃𝚊𝚕𝚔𝚜 𝙲𝚛𝚢𝚙𝚝𝚘 (@ColinTCrypto) June 4, 2026
Falling below $65,000 acted as a major liquidation level and exposed weak hands. Short-term holders capitulating at this scale often marks local bottoms, as supply moves from fearful sellers to stronger hands. However, this is a stress signal, not a guaranteed reversal.
In the short term, Bitcoin needs to hold above $63,000-$64,000 to stay stable. A break below that could push it toward $60K. Right now, market moves are driven more by positioning, leverage, and fear than by new fundamentals.
Bitcoin is currently trading around $64,349.
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