Why Is Crypto Crashing: Bitcoin at $63K, MSTR Down $10B and $750B Asia Bloodbath

Key Takeaways

• Bitcoin plunged to $61K on June 4 as crypto lost $3B in two days, with 208,000 traders liquidated and MSTR down $10B on its BTC position
• Asian markets wiped $750B in one session, with Korea down 6.9%, Taiwan down 4%, and Nikkei down 2.4% in a global risk-off cascade
• Five structural reasons behind the crash include Strategy’s broken promise, record ETF outflows, Iran war inflation, and $750B Asian market bloodbath

Bitcoin (BTC) briefly fell to around $61,300 on June 4. This marked its lowest level since February. More than 208,000 traders liquidated across crypto markets over the past 24 hours, according to CoinGlass. Meanwhile, total crypto liquidations climbed above $3 billion over two days. The decline has been accompanied by weakness across several parts of the market. Strategy’s stock has fallen sharply from its peak, while the crypto market cap has dropped to about $2.18 trillion from its October 2025 high of $4.2 trillion.

Also Read: Gold Price Is Down 20% From $5,589 ATH & JPMorgan, Goldman, UBS All Say Buy

Five Real Reasons Behind the Crash That Have Nothing to Do With Panic Selling

Strategy Broke a Long-Held Bitcoin Narrative

Strategy disclosed that it sold 32 BTC between May 26 and May 31. It raised roughly $2.5 million. The sale represented just 0.004% of its 843,706 BTC holdings, but it was the company’s first reported Bitcoin sale since December 2022. The move came after years of Michael Saylor publicly advocating a “never sell” approach. This has made the transaction more significant symbolically than financially.

Bitcoin ETFs Have Seen Their Longest Outflow Streak Ever

According to SoSoValue data, US spot Bitcoin ETFs have recorded 11 consecutive trading days of outflows, totaling approximately $3.45 billion. The streak is the longest since the products launched in January 2024. One trading session alone saw nearly $484 million leave the funds, raising questions about whether institutional demand has started to cool.

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More Than $3 Billion in Leverage Was Wiped Out

The decline quickly turned into a liquidation event. CoinGlass data shows that more than $3 billion in leveraged positions were liquidated over two days, with over 208,000 traders affected. Bitcoin-linked positions accounted for more than $800 million of those liquidations. The scale of the wipeout makes it one of the largest deleveraging events of 2026 so far. During the past 24 hours, $223 million positions were liquidated.

Capital Is Moving Toward AI Stocks Instead

Several analysts have pointed to capital rotation as a growing concern for crypto. While Bitcoin has fallen by 25% from recent highs and the total crypto market has dropped from $4.2 trillion to about $2.18 trillion, AI-related equities continue attracting investor flows. Presto Research noted that several of Bitcoin’s sharpest pullbacks this year have coincided with rallies in AI stocks and gold as investors shifted toward sectors showing stronger momentum.

A $750 Billion Selloff Hit Asian Markets

The weakness was not limited to crypto. South Korea’s Kospi fell 6.9%, Taiwan’s benchmark index dropped 4%, and Japan’s Nikkei declined 2.4% during the same period. Combined, the three markets wiped out roughly $750 billion in value in a single session. The declines came as investors pulled back from risk assets across several markets, including crypto.

Bitcoin briefly touched $61,300, its lowest level in four months. Derivatives markets suggest traders are now focused on $60,000. Deribit put option carries more than $1 billion in notional open interest. This makes it one of the most closely watched levels in the market right now.

Also Read: XRP Price May Reach $40 by 2035, While XRPL Passes $400M in Tokenized Assets