Crypto Fear Deepens as Bitcoin Tests Critical Support Near $65,000
The cryptocurrency market remained under pressure on June 3, with investors navigating a combination of macro uncertainty, heavy derivatives liquidations, and continued weakness across major digital assets.
Summary:
- Crypto market cap fell to $2.28 trillion as risk appetite weakened.
- More than $1.13 billion in leveraged positions were liquidated in 24 hours.
- Treasury Secretary Scott Bessent backed a Strategic Bitcoin Reserve and urged passage of the CLARITY Act
Total cryptocurrency market capitalization declined approximately 2.1% to $2.28 trillion, while the CoinMarketCap’s Crypto Fear & Greed Index dropped to 25, signaling persistent risk aversion among market participants.
Bitcoin trades near $65,900 at the time of writing, extending its weekly decline to nearly 12%. Ethereum fell below $1,830, down more than 10% over the past seven days, while Solana slipped toward $73 after losing nearly 13% during the same period. Despite the broader selloff, isolated pockets of strength emerged, with Hyperliquid’s HYPE token gaining more than 24% over the week and briefly surpassing Solana in per-token price.
At the same time, the policy backdrop remains increasingly supportive for the sector. U.S. Treasury Secretary Scott Bessent recently stated that the administration is moving at a “deliberate speed” toward establishing a Strategic Bitcoin Reserve while simultaneously encouraging lawmakers to advance the CLARITY Act, a major cryptocurrency market structure bill that could provide long-awaited regulatory certainty for digital assets.
More Than $1 Billion in Leveraged Positions Wiped Out
The latest market decline triggered another significant liquidation event across crypto derivatives markets.
According to CoinGlass data, more than 200,000 traders were liquidated during the past 24 hours, with total liquidations reaching approximately $1.13 billion. Long positions accounted for roughly $935 million of the total, highlighting how aggressively traders had positioned for a recovery following Bitcoin’s previous consolidation phase.
The largest individual liquidation reportedly occurred on HTX’s BTC-USDT trading pair and exceeded $59 million.
Large-scale liquidation events often accelerate short-term price declines as forced selling compounds existing market weakness. However, historically, major leverage flushes have also helped reset funding conditions and remove excessive speculative positioning from the market.
While the scale of the liquidations underscores the current volatility environment, it also reflects the continued depth and maturity of digital asset derivatives markets, where leverage remains a significant driver of short-term price action.
Bitcoin Technical Analysis Shows Bears Remain in Control
From a technical perspective, Bitcoin continues to trade within a clearly defined downtrend.
The 30-minute TradingView chart shows BTC changing hands near $65,980 after recovering modestly from session lows. Price remains below all major moving averages, including the 20-period, 50-period, 100-period, and 200-period moving averages, which are currently clustered near $66,500, $66,730, $68,360, and $70,880 respectively.
This configuration is typically viewed as bearish because shorter-term averages remain positioned beneath longer-term trend indicators, confirming downward momentum across multiple timeframes.
The moving average ribbon also remains negatively aligned, suggesting that sellers continue to control market structure despite intermittent relief rallies.
Momentum indicators provide a mixed picture. The Relative Strength Index (RSI) has recovered to approximately 40 from recent oversold levels but remains below the neutral 50 threshold. This suggests selling pressure has eased somewhat, yet buyers have not regained meaningful control of the trend.
READ MORE: Strive Expands Bitcoin Holdings to $1.35 Billion With Latest Purchase
From a price-structure perspective, Bitcoin’s first key resistance zone sits between $66,500 and $66,700, where the 20-period and 50-period moving averages converge. A sustained move above that area would be required to signal improving short-term momentum.
On the downside, support remains concentrated around the recent lows near $65,500. A decisive break below that level could expose additional downside toward lower liquidity zones, while successful defense of support could create conditions for a broader relief rally.
Regulatory Momentum Continues to Build
Despite near-term market weakness, regulatory developments in Washington continue to attract investor attention.
According to information from Benzinga, Bessent’s comments regarding a Strategic Bitcoin Reserve represent another signal that digital assets are increasingly becoming part of broader U.S. economic and financial policy discussions.
The significance of Treasury Secretary Scott Bessent’s comments extends beyond politics. A Strategic Bitcoin Reserve would represent one of the strongest signals yet that digital assets are moving from a speculative asset class toward a recognized component of national financial strategy. While no timeline has been finalized, investors increasingly view regulatory clarity and sovereign adoption as long-term demand catalysts.
At the same time, the administration’s support for the CLARITY Act suggests lawmakers are attempting to establish a clearer regulatory framework governing digital asset issuance, trading, and oversight.
Many institutional investors have identified regulatory uncertainty as one of the largest obstacles preventing broader participation in cryptocurrency markets. Progress on market structure legislation could therefore have implications extending far beyond short-term price movements.
The simultaneous pursuit of both a Bitcoin reserve strategy and comprehensive market regulation reflects a notable shift from previous policy approaches that largely focused on enforcement and oversight.
Market Outlook Remains Balanced Between Fear and Opportunity
For now, Bitcoin continues to dictate the broader market narrative.
Although the Altcoin Season Index has recovered to 52, the reading remains only marginally above neutral territory, indicating that market leadership remains concentrated rather than broad-based. Most major digital assets continue to follow Bitcoin’s direction, even as select tokens outperform.
The current environment presents a contrast between deteriorating short-term technical conditions and increasingly constructive long-term fundamentals. On one side, leveraged liquidations, declining prices, and fear-driven sentiment continue to pressure risk assets. On the other, institutional adoption, regulatory progress, and government engagement with digital asset policy continue to strengthen the sector’s long-term investment case.
Until Bitcoin reclaims key resistance levels and stabilizes above its moving-average structure, volatility is likely to remain elevated. However, the combination of washed-out sentiment, reduced leverage, and growing regulatory clarity means market participants will be closely watching for signs that the latest correction is beginning to exhaust itself.
What Investors Should Watch Next
The next 48 hours could prove decisive for market direction. Investors are closely watching:
- Whether Bitcoin can reclaim $66,700 resistance.
- Funding-rate normalization following the liquidation event.
- Progress of the CLARITY Act in Congress.
- Spot ETF flows for signs of institutional demand returning.
If Bitcoin stabilizes above support while ETF outflows slow, the current correction could begin to resemble previous leverage-reset events rather than the start of a prolonged bear phase.
For now, Bitcoin remains trapped between deteriorating short-term technicals and improving long-term fundamentals. The market has absorbed more than $1 billion in liquidations, sentiment has fallen into fear territory, and policymakers continue advancing crypto legislation. Whether this week’s selloff becomes a lasting bottom or merely another stop in a broader correction will likely depend on Bitcoin’s ability to defend the $65,500 support zone over the coming sessions.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
