Bitcoin Slides to $66,000 as ETF Outflows Persist and Mt. Gox Wallets Stir Supply Fears

Bitcoin came under sharp selling pressure on June 3, dropping about 6.5% over the past 24 hours to trade around $66,000. The move sparked more than $1.7 billion in liquidations across the crypto market, one of the largest leveraged flushes seen in recent months. An analyst said the pullback reflects several negative catalysts landing at once. Spot Bitcoin ETFs remain a key overhang. Investors have withdrawn roughly $3.45 billion over 11 straight trading sessions, sustaining steady sell pressure. Adding to the caution, Strategy (formerly MicroStrategy) disclosed the sale of 32 BTC. While small relative to its total holdings, it was the company's first Bitcoin sale since 2022 and drew outsized attention. Sentiment also weakened after fresh activity from Mt. Gox-linked wallets. Reports of test transfers to exchanges revived concerns that additional Bitcoin could hit the market as creditor repayments continue. Risk appetite deteriorated quickly. The Crypto Fear & Greed Index fell from 23 to 11 in a single day, pushing sentiment deeper into "Extreme Fear." As Bitcoin broke below key technical levels, leveraged long positions unwound, accelerating the decline and contributing to the $1.7 billion liquidation wave. Crypto analyst Michaël van de Poppe said the $66,000 area is an important zone to watch, with additional focus on the 200-week moving average near $61,000 as a potential support level. He said he intends to keep accumulating if prices move deeper into that range. Not all observers see a near-term bottom. Longtime Bitcoin critic Peter Schiff argued the market has further to fall, warning that a break below $50,000 could set up a rapid drop under $20,000. Schiff also criticized Strategy's Bitcoin-focused approach, pointing to rising risks tied to the company's financial products as conditions tighten. Traders are now watching whether the $66,000 support zone can hold as fear continues to dominate the market.