Bitcoin Falls to $58K Triggering $120 Billion Crypto Wipeout: What Happened This Week
Bitcoin Falls to $58K Triggering $120 Billion Crypto Wipeout: What Happened This Week
June has been one of the toughest months for the crypto market in a long time. Prices dropped hard across the board and many investors are feeling the pain.
The trouble started last Friday after the new Fed Chair Kevin Warsh kept interest rates the same and sounded tough on inflation. At the same time the expected deal between the US and Iran did not happen.
Bitcoin Price Action This Week
Bitcoin first fell from $67,200 down to $63,000. Bulls tried to push it back above $65,500 on Monday but the move failed fast. The price then dropped over $3,000 in just a few hours.
Support at $63,000 did not hold for long. On Wednesday the price went down to $59,000 which was a new low for the year. A quick bounce to $62,000 turned out to be a dead cat bounce. Bears kept selling and pushed Bitcoin all the way to
The price has recovered a little but is still trading below $60,000. Uncertainty remains high.
Broader Market Losses
The total crypto market cap fell by more than $120 billion in one week. Almost every major coin closed the week in the red.
- Bitcoin down over 5 percent
- Ethereum down 8.5 percent
- XRP down 8.5 percent
- Dogecoin, Cardano and others lost double digits
Only a few tokens like AAVE managed to stay green. Trading volume stayed high at around $99 billion while Bitcoin dominance sat near 55.6 percent.
Strategy Faces Growing FUD
Michael Saylor’s Strategy company became a big topic this week. CryptoQuant advised the firm to stop buying Bitcoin and instead build up its cash reserves. Strategy did slow down its purchases and added $300 million to its USD holdings while buying only $35 million worth of Bitcoin.
Analysts warned that if the bear market lasts longer Strategy stock could face serious trouble. In a worst case scenario some models even showed the Bitcoin per share value dropping close to zero. There were also warnings that the company might need to sell tens of thousands of Bitcoin in the coming years.
Other Important News
Polymarket said it will refund users after a frontend hack stole $3 million. The platform blamed a third party vendor and promised full repayment.
Hyperliquid appeared on Singapore’s investor alert list but the exchange said this does not mean it broke any rules or faces a ban.
Bitcoin miners sent large amounts of coins to Binance with inflows hitting a four month high. This happened right as prices were falling fast.
Some analysts also pushed back against the idea that money is rotating from Bitcoin into gold. They said the story does not match what the data shows.
Looking Ahead
The market remains nervous. Bitcoin needs to hold above $58,000 to avoid another sharp drop. Traders will watch the next Fed comments and any new developments between the US and Iran closely.
Many coins are already at multi month lows so any positive news could bring quick relief. For now caution is the main mood in the crypto space.
