On the evening of June 1, 2026, the price of Bitcoin sharply declined, reaching a low of $71,389. This drop triggered a chain reaction in the cryptocurrency market — following Bitcoin, other digital assets also fell, although some projects, including Hyperliquid (HYPE), maintained positive momentum.
This is reported by Finway
Main Reasons for the Cryptocurrency Market Decline
Market pressure intensified after Strategy, the largest corporate investor in Bitcoin, officially confirmed the sale of part of its assets for the first time. According to data submitted in an 8-K form to the U.S. Securities and Exchange Commission (SEC), from May 26 to May 31, Strategy sold 32 BTC for approximately $2.5 million at an average price of $77,135 per coin. Analysts believe this move could have significantly impacted the price dynamics of the first cryptocurrency.
“On the evening of June 1, 2026, the Bitcoin price momentarily dropped to $71,389, according to TradingView. The negative correction occurred against the backdrop of stalled negotiations between the U.S. and Iran, as well as the first confirmed sale of crypto assets by Strategy.”
Additional negative pressure was exerted by the escalation in the Middle East. The breakdown of negotiations between the U.S. and Iran, as well as violations of the ceasefire and Israel’s aggression towards Lebanon, led to a halt in dialogue between Tehran and Washington. Iran also announced a complete blockade of the Strait of Hormuz and is considering military actions near the Bab-el-Mandeb Strait. Against this backdrop, prices for Brent crude oil surged by 6.8%, while WTI rose by nearly 8%.
Market Status: Liquidations, Trader Sentiment, and Market Cap Leaders
At the time of preparing this material, Bitcoin is trading at $71,636, which is 2.7% lower than the previous day. The market crash caused mass liquidations in the futures markets — their daily volume has already exceeded $530 million, most of which is attributed to long positions. The most liquidations were recorded in Bitcoin and Ethereum.
Among the market cap leaders, Hyperliquid (HYPE) remains, having previously reached an all-time high and currently demonstrating positive dynamics. This indicates that even during periods of significant volatility, certain digital assets can resist the overall market trend.
The Fear and Greed Index, which reflects market participants’ sentiment, fell another four points over the last day and remains in the “orange” zone, indicating a dominance of cautious or negative expectations among investors.
Additionally, it is worth noting that just a few hours before the onset of market turbulence, U.S. President Donald Trump announced the imminent conclusion of an agreement between the parties that could be beneficial for America. However, subsequent events provoked a sharp deterioration in the situation at the regional level and impacted global financial markets.
