Bitcoin plunged below $62,000, its lowest level since the Iran-Iran war, as investors rushed to reduce risk.

Bitcoin plunged below $62,000, its lowest level since the Iran-Iran war, as selling pressure from Michael Saylor's Strategy and outflows from US Bitcoin ETFs severely weighed on investor confidence.

June 4, 2569 at 09.23:XNUMX a.m. Bloomberg News reported that Bitcoin prices have plummeted to their lowest level since the conflict between the United States and Iran, following renewed tensions in the Middle East. This has led investors to reduce their holdings of risky assets and turn to safer assets instead.

Bitcoin fell more than 5% in early trading in Singapore on Thursday, dropping below $62,000 and hitting its lowest level since February 6th. Over the week, Bitcoin has lost approximately 16% of its value.

The pressure on the price partly stemmed from Michael Saylor's Strategy Inc.'s decision to sell approximately $2.5 million worth of Bitcoin, surprising the market as the company was seen as one of the world's largest proponents of the "buy and hold" Bitcoin strategy.

Over the years, Strategy has accumulated a massive amount of Bitcoin, becoming one of the largest holders, and the company's shares are used as a proxy for Bitcoin investments through a Digital Asset Treasury model that uses company funds to buy and hold cryptocurrencies.

Many investors therefore view Strategy's sale of Bitcoin as a negative signal to market confidence, even though Saylor had previously signaled that the company might start selling some assets in the future.

Josh Doo, Chief Investment Officer of Animoca Brands. It was stated that the drop in Bitcoin this week was due to Strategy's failure to break the image of not selling Bitcoin, a principle they had always upheld, significantly shaking investor confidence.

He also warned that rising oil prices due to conflicts in the Middle East, coupled with increasingly tighter macroeconomic conditions, could push Bitcoin below the key support level of $62,000, a level it has held since the start of the Iran-Iran conflict.

This recent drop in Bitcoin reflects a different movement from the US tech stock market, which continues to set new all-time highs.

Since hitting an all-time high above $126,000 last October, Bitcoin has lost more than half of its value.

Analysts believe Bitcoin remains vulnerable to macroeconomic and geopolitical risks, particularly following the recent military attack that disrupted peace efforts between the US and Iran.

Asian stock markets and U.S. stock index futures fell on Thursday morning, along with Bitcoin, reflecting a risk-off sentiment among global investors.

The selling pressure wasn't limited to Bitcoin; Ether, the world's second-largest cryptocurrency, also fell to its lowest level since April 2025.

Data from CoinGlass indicates that in the past 24 hours, approximately $1.5 billion worth of long positions were forcibly closed, with nearly half occurring within just four hours, and the majority of these losses involving Bitcoin.

Meanwhile, investors continued to withdraw funds from US-listed Bitcoin ETFs for the 12th consecutive day, resulting in a cumulative outflow of nearly $4,000 billion, marking the longest continuous outflow since these funds began trading.

Analysts believe that if the situation in the Middle East continues to drag on and oil prices keep rising, the cryptocurrency market may face additional short-term pressure from both macroeconomic factors and increased geopolitical risks.

refer : bloomberg.com

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