TL;DR

Bitcoin fell below $62,000 on June 4, 2026, to its lowest level since the US-Iran war began on February 28. Strategy Inc. (formerly MicroStrategy), the largest corporate Bitcoin holder, sold 32 BTC for the first time since 2022 to cover preferred stock dividends. The move, combined with 11 consecutive days of spot ETF outflows and over $1.5 billion in forced liquidations, broke a key psychological support level and erased every gain BTC had accumulated since the war started.

What Happened

Bitcoin opened Thursday at $64,038 and dropped quickly to a session low of $61,300 before partly recovering to around $62,500 by early afternoon Eastern time. As of 7:40 a.m. ET, prices sat at $62,257, according to Yahoo Finance. The price is now below the $65,878 level where BTC traded on February 28 when the US and Israel launched airstrikes against Iran, triggering the Iran war.

That conflict closed the Strait of Hormuz, a maritime choke point handling roughly 20% of global oil and liquefied natural gas shipments before hostilities began. Bitcoin initially rose through the conflict, climbing above $82,000 by May 11 as some traders treated it as a geopolitical hedge. Since then, it has given back all of those gains.

The sell-off accelerated this week after Strategy (NASDAQ: MSTR) disclosed it sold 32 BTC between June 1 and 3, raising approximately $2.5 million to fund preferred stock dividend payments. It was the company's first Bitcoin sale since 2022. For a firm whose identity has been built around relentless BTC accumulation, any sale carries outsized signal value regardless of its size.

Ethereum (ETH) also declined, opening at $1,810.96 and dropping to $1,740.70 by 7:40 a.m. ET. The broader crypto market lost an estimated $160 billion in total market capitalization in the 24 hours following the Strategy disclosure, according to Yahoo Finance.

Bitcoin Pre-War Lows: Why This Level Matters to Traders

The pre-conflict price of approximately $65,878 acts as a psychological anchor. A sustained close below it signals that the entire war premium that lifted BTC through March and April has been fully unwound. That shift changes the risk narrative for positioning in both spot and derivatives markets.

Spot Bitcoin ETFs recorded their 11th consecutive day of net outflows as of June 4, according to Unchained Crypto. Over $1.5 billion in leveraged long positions were liquidated as prices dropped. CoinDesk reported $3 billion in total crypto liquidations over the prior two days, with heavy buying in $60,000 put options (contracts that profit if BTC falls further) indicating that traders expect additional downside.

In our internal review of crypto trader activity on ChartDojo, BTC setup searches and chart replay requests spiked this week as users worked to map out whether the $60,000 area would hold as the next meaningful support level.

Why Markets Moved

The Strategy disclosure. The 32-BTC sale was small in dollar terms relative to the company's reserve and was mechanically driven by dividend obligations rather than financial distress. But it broke a trust signal that markets had priced in for years. Strategy's position had been treated as permanent one-way accumulation. Any deviation from that creates uncertainty about future selling by the dominant corporate buyer in the market.

Sustained ETF outflows. Eleven consecutive days of net selling from spot Bitcoin ETFs reflect broad institutional disengagement. These funds had been a major structural source of demand since their US launch in early 2024. When they flip to persistent outflows, the market loses a key buying force that has supported price through several prior corrections.

Iran war inflation persistence. Brent crude near $97 a barrel keeps US inflation expectations high and reduces the case for Federal Reserve rate cuts. Risk assets, crypto included, remain under pressure in a prolonged high-rate environment. Bitcoin has gradually re-coupled with equities risk sentiment after briefly acting as a partial safe-haven proxy in the early weeks of the conflict.

Implications for Traders

Crypto traders: The $60,000 level is now the critical line. Derivatives data shows concentrated put buying there, and a weekly close below it would mark Bitcoin's weakest performance since late 2023 and open a path toward $55,000 to $57,000. Any public clarification from Strategy that the 32-BTC sale was a single dividend-driven transaction and not the start of a broader drawdown could provide short-term stabilization.

Equities and futures traders: The Dow Jones Industrial Average rose approximately 875 points to a fresh record close of 51,561 on Thursday, driven by Iran ceasefire progress and an Israel-Lebanon deal. That equity strength stands in sharp contrast to crypto weakness. The market is splitting along risk-asset lines: value stocks and energy names are recovering on ceasefire optimism while speculative assets are being sold. The YM versus NQ (Nasdaq futures) divergence widened materially on Thursday. For the full equities picture, see our analysis of today's Broadcom earnings miss and semiconductor sector rotation.

Energy and macro traders: WTI crude fell toward $95 on Thursday after three consecutive sessions of gains, partly on ceasefire optimism. A genuine Hormuz reopening remains the single most important macro catalyst for a broad risk-asset recovery. Our earlier Iran war risk watch covers the energy market backdrop in detail.

Potential Positives vs Negatives

Positives: Iran ceasefire progress is confirmed by multiple outlets today. An Israel-Lebanon ceasefire deal was reached, described by Reuters as boosting hopes for a broader Iran deal. If the Hormuz closure ends, oil drops, inflation expectations ease, and risk appetite could recover across asset classes including crypto. The Strategy sale was small, mechanically motivated, and does not on its own indicate the company is exiting its Bitcoin position.

Negatives: Eleven consecutive ETF outflow days reflect genuine institutional selling, not just a brief pause. The $1.5 billion in liquidated longs removes near-term buying power from the leveraged pool. Bitcoin's decoupling from its early safe-haven role removes the narrative that drove much of the March through May rally. And with Brent near $97, the inflation ceiling on Fed rate cuts remains intact.

What Could Happen From Here

Base case: Bitcoin holds the $60,000 area and consolidates in a $60,000 to $65,000 range over the next one to two weeks. The war continues without a full Hormuz reopening. ETF flows stabilize but do not reverse sharply. Confirmation: ETF outflows slowing to fewer than five consecutive days; BTC closing above $62,500 on a weekly basis; no additional corporate BTC selling disclosures.

Upside case: A credible Iran deal framework emerges within 48 to 72 hours, oil drops sharply, and the Fed signals openness to rate cuts. ETF flows turn positive and BTC re-tests $70,000 to $75,000 within two weeks. Confirmation: weekly BTC close above $65,878 (the pre-war level); spot ETF daily inflows resuming; Brent crude dropping below $90.

Downside case: BTC breaks below $60,000 on continued ETF selling or additional corporate BTC disclosures. Iran ceasefire talks collapse. A sustained move below $60,000 puts the next major support zone at $55,000 to $57,000. Confirmation: daily close below $60,000 with no immediate recovery; ETF outflows exceeding $200 million per day for more than three sessions.

What to Watch Next (24 Hours)

  • BTC price action at and below the $60,000 level and whether it holds as support
  • Spot Bitcoin ETF daily flow data from Farside Investors
  • Any public statement from Strategy Inc. clarifying the scope of its June BTC sale
  • Iran-US deal negotiations and State Department briefings on Hormuz
  • WTI and Brent crude price moves as a real-time proxy for ceasefire progress

Frequently Asked Questions

Why did Strategy sell Bitcoin if it is a long-term holder?
Strategy sold 32 BTC, roughly $2.5 million, to fund scheduled payments on its preferred stock series. These are dividend-like obligations the company must meet regardless of its Bitcoin outlook. The sale was not a change in investment strategy, but it was the first liquidation since 2022 and shook market confidence that had been built on an assumed permanent accumulation stance.

What does pre-war lows mean for Bitcoin?
It means BTC is now trading below the price it held on February 28, 2026, the day the US-Iran war began, when Bitcoin opened at $65,878. Falling below that level signals the full reversal of the war premium that temporarily drove prices higher as traders treated BTC as a geopolitical hedge.

Sources

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Header image source: pexels by Marnie Griffiths. License: PEXELS.