Bitcoin dropped below $67,000 on Tuesday, marking its lowest level since April. The decline triggered nearly $400 million in liquidations within an hour and over $1 billion over 24 hours. Analysts linked the selloff to capital shifting toward AI-related equities and heavy outflows from Bitcoin ETFs.
Bitcoin traded as low as $66,300 during the session, down about 6 percent for the day. The move followed a failed attempt to reclaim its 200-day moving average and coincided with spot Bitcoin ETFs shedding 62,794 BTC over the prior three weeks. K33 Research noted that investors view the opportunity cost of holding Bitcoin as too high while AI stocks continue to rise. The firm warned that fading institutional demand and rising leverage in derivatives markets could lead to deeper losses and a choppy summer. On June 1, Strategy disclosed the sale of 32 Bitcoin to cover dividend obligations. Although the amount was small relative to daily turnover, the move broke from the firm's prior accumulation stance and added to negative sentiment. Broader crypto markets also declined, with Ethereum, XRP, Solana and others posting losses of 3 percent or more. Long positions accounted for the majority of the roughly $1.02 billion in liquidations recorded over the full day.
