The cryptocurrency market experienced a setback on Wednesday as Bitcoin plummeted by over $2,000 in less than an hour, hitting a low of $61,460 before bouncing back above $64,000. This decline pushed Bitcoin below the $63,000 mark for the first time since February 24, causing more than $1.1 billion in liquidations of leveraged positions across the market within a day.
Ethereum faced an even steeper drop in percentage terms, falling to about $1,732 as traders quickly sought to minimize their risk exposure. This sell-off wiped out billions in market capitalization, marking one of the most tumultuous trading periods of 2026.
BREAKING: Bitcoin’s decline accelerates, dipping below $63,000 for the first time since February 24.
Over $1.1 billion in leveraged crypto positions have been liquidated within the last 24 hours. pic.twitter.com/lgko3fP25s
— The Kobeissi Letter (@KobeissiLetter) June 4, 2026
Institutional Selling Exacerbates Market Weakness
Abraxas Capital, a firm specializing in cryptocurrency investments, reportedly offloaded 2,469 Bitcoin valued at about $166 million over the past 24 hours, averaging around $67,210 per Bitcoin. They shifted 1,469 Bitcoin to Kraken while withdrawing $22.7 million in USDC, according to data from the on-chain tracking service Hupzy.
The timing of these sales added pressure on an already weakened market, intensifying supply concerns.
In another development, wallets associated with Mt. Gox transferred 116.3 Bitcoin, approximately worth $8.16 million, to Bitstamp, as reported by Lookonchain. Although this amount is relatively small compared to daily trading volumes, any transfers from Mt. Gox wallets attract attention due to ongoing concerns regarding creditor sales.
Mt. Gox is offloading $BTC!
Mt. Gox wallets have deposited 116.3 $BTC ($8.16M) into #Bitstamp.https://t.co/7NqYYfAxGT pic.twitter.com/syc71JAcpB
— Lookonchain (@lookonchain) June 4, 2026
Analysts Share Their Insights
Opinions on the significance of the decline vary. Peter Schiff noted that Bitcoin found temporary support near $61,000 and rebounded by over $2,000 from its lows, but he doubted whether this recovery would hold strong enough.
It seems the correction in tech stocks has finally begun. This is detrimental to Bitcoin, as the tech surge was its primary support. As tech stocks drop, Bitcoin is likely to crash. Conversely, gold might rise as investors flock to a genuine safe-haven asset.
— Peter Schiff (@PeterSchiff) June 4, 2026
Crypto analyst Wendy O took a broader perspective, reminding investors that Bitcoin has weathered far more severe downturns in previous cycles, including a drop from over $5,000 to around $3,000.
Benjamin Cowen provided a more optimistic medium-term perspective, suggesting that as excitement around major traditional public offerings fades, capital might flow back into Bitcoin as investors search for new opportunities.
For the moment, Bitcoin has rebounded from its session lows. However, the combination of increasing liquidations, institutional selling, and renewed fear has created a fragile sentiment as the market approaches the next trading day.