Bitcoin (BTC) Plunges to Worst Weekly Loss Since FTX Collapse Amid Geopolitical Turmoil

Key Highlights

• Bitcoin experienced its sharpest weekly decline since the November 2022 FTX meltdown, plummeting 16% to slip under $60,000
• Escalating military confrontation between the US and Iran drove BTC down an additional 3% on June 9
• BTC pierced its 200-week moving average, signaling potential bearish market conditions
• US spot Bitcoin ETFs have hemorrhaged more than $5.5 billion through 13 consecutive days of withdrawals
• Market analyst Ted Pillows projects further decline toward the $50,000–$52,000 range before establishing a cycle floor

Bitcoin plunged beneath the $60,000 threshold last Friday, concluding its most devastating week since the spectacular implosion of FTX exchange in November 2022. The cryptocurrency registered a brutal 16% contraction across seven days, representing the most severe weekly deterioration witnessed in more than two years.

As of current market data, BTC was exchanging hands near $61,500, remaining more than 50% below its historic peak above $126,000.

The selling intensified dramatically on June 9 following an announcement from US Central Command regarding “self-defense” military operations targeting Iran. These strikes came in response to the downing of a US Army Apache helicopter in proximity to the Strait of Hormuz. Bitcoin tumbled 3% immediately following the announcement, touching $61,766.

Cryptocurrency long positions faced liquidations totaling $136 million during the 24-hour period after the military announcement, with Bitcoin representing the lion’s share of these forced closures, according to data compiled by CoinGlass.

Strategy’s Unexpected Sale and Critical Technical Breakdown

Compounding the negative sentiment, Strategy Inc. — the Bitcoin-accumulating enterprise led by Michael Saylor — liquidated a modest portion of its cryptocurrency reserves, undermining the prevailing market assumption that the company would maintain perpetual holding status. Although Strategy rapidly acquired 1,550 BTC for approximately $101 million, the psychological impact on market confidence had already materialized.

Bitcoin additionally breached its 200-week moving average during the previous week, a technical threshold monitored intensively by market participants. Paul Howard from cryptocurrency trading operation Wincent characterized it as “important confirmation that markets may have entered a bear phase.”

Retail Accumulation Versus Whale Hesitation

Blockchain analytics provided by Santiment reveal a divergence between smaller and larger cryptocurrency holders. Wallets containing fewer than 0.01 BTC expanded their positions by 0.36% throughout the past fortnight, despite Bitcoin’s struggle to maintain the $60,000 level. Conversely, wallets holding between 10 and 10,000 BTC decreased their positions by 0.20%.

Analyst Ted Pillows contributed his perspective on X, emphasizing that no Bitcoin cycle trough has historically materialized above the “Realized Price,” presently positioned at $53,000. He suggested BTC will “most likely drop towards $50,000–$52,000 before a cycle bottom.”

US-traded spot Bitcoin ETFs have now registered $5.5 billion in aggregate net withdrawals spanning 13 uninterrupted days.

The post Bitcoin (BTC) Plunges to Worst Weekly Loss Since FTX Collapse Amid Geopolitical Turmoil appeared first on Blockonomi.