Bitcoin Plunges Below $66K, $1.8B Liquidated as Leverage and Whale Selling Trigger Crash
The crypto market fell nearly 7% in 24 hours into June 3, with Bitcoin briefly breaking below $66,000 and around $1.8 billion in positions liquidated. On-chain data had been flashing warnings for days. Bitcoin's futures open interest leverage ratio climbed to 2.63% on June 2, the highest since October 2025, just before the Black Friday crash. Funding rates also turned highly positive, indicating crowded long positioning. The spark was a rare Bitcoin sale by Strategy (formerly MicroStrategy) on June 1, which shattered sentiment. Spot exchange inflows reached 58,617 BTC on June 2, exceeding the October 2025 pre-crash levels. Whale and shark wallets (holding 10-10,000 BTC) sold 24,602 BTC over the past week, an 18% reduction. CryptoQuant head Julio Moreno noted Bitcoin demand is contracting at 232,000 BTC per month, with the correction tied to demand, not macro factors. Bitcoin dominance at 58.4% meant its slide dragged the entire market down. The liquidation event was the largest since October 10, 2025.
Key facts
- Bitcoin briefly broke below $66,000 with $1.8B liquidated on June 3.
- Futures leverage ratio hit 2.63%, highest since October 2025 crash levels.
- Strategy's rare Bitcoin sale on June 1 triggered sentiment collapse.
- Whales and sharks sold 24,602 BTC in the past week, an 18% reduction.
- Bitcoin demand contracting at 232K BTC/month, driving correction.