Bitcoin drops below $70,000 as $800M in crypto longs liquidated

Bitcoin breached the $70,000 support level for the first time in two months as a cascade of long liquidations and renewed Mt. Gox transfer fears rattled the market.

Bitcoin fell 2% to $69,631 on Bitstamp on June 2, its first dip below $70,000 since mid-April, as $800 million in crypto long positions were liquidated across exchanges in 24 hours.

"Once support starts breaking across multiple timeframes, the market usually starts moving toward the next major liquidity pivot," trader Ardi said on X. "For me, that sits around $68,700."

The selloff was triggered by two events. On-chain data from Arkham Intelligence showed Mt. Gox moving 10,422 BTC worth $739 million to new wallets — its largest transfer since March — while Strategy, the largest corporate Bitcoin holder, sold 32 BTC for $2.5 million to fund preferred stock distributions between May 26 and 31. The S&P 500, meanwhile, posted a fresh all-time high above 7,600 points, widening the divergence between equities and crypto.

A break below $68,000 could accelerate selling pressure toward $65,000 or $61,000, with the 200-day moving average serving as a longer-term anchor, analysts said. The immediate test sits at the $68,000 to $69,000 range, where Material Indicators flagged its Q2 2026 Timescape support levels.

Mt. Gox and Strategy Add to Selling Pressure

The Mt. Gox trustee moved the bulk of the 10,422 BTC — roughly 10,306 coins — to a previously unseen address starting with 14FEEMRh, with a smaller portion routed to a known hot wallet. Arkham Intelligence confirmed no immediate deposits to exchanges and no large-scale selling activity, but the headline alone triggered selling in thin summer liquidity. The exchange, which once handled more than 70% of global Bitcoin trading before its 2014 collapse, still holds approximately 34,500 BTC for remaining creditor repayments, with an extended deadline of October 31, 2026.

Strategy's sale, while representing less than 0.004% of its 843,000-plus BTC treasury, marked a symbolic shift from its Bitcoin-first stance during a fragile moment for market sentiment. The company sold the 32 BTC to fund preferred stock distributions, breaking a long-standing accumulation streak.

Key Levels to Watch

Technical observers highlighted clear support zones. The $68,000 level looks critical, with deeper macro demand sitting between $64,000 and $66,000, where longer-term holders previously accumulated heavily. On the upside, a hold above $68,000 could enable a reclaim of the $70,000 to $72,000 range. Traders often front-run known Mt. Gox movements, which can compress the actual impact on price.

Bitcoin still trades 44% below its all-time high near $126,000 set in October 2025. Persistent headwinds include shifting macro conditions, periodic ETF outflows, broader deleveraging, and seasonally thin summer trading volumes. The longer-term path will hinge on macro signals, renewed ETF inflows, and the gradual digestion of known supply overhangs as Mt. Gox repayments stretch into late 2026.

This article is for informational purposes only and does not constitute investment advice.