Bitcoin Crashes Below $61K as Strategy Sells, Hedge Funds Flee

Bitcoin fell to $60,912 on June 6, 2026, down 4.2% in a single day and 16% over the week. The crash was sparked by MicroStrategy’s sale of 32 bitcoin to fund dividend obligations, combined with a stronger-than-expected May jobs report that pushed Treasury yields higher. The $60,000 level represents a critical support threshold for institutional investors and derivatives traders.

Why the $60,000 Level Matters

Bitcoin’s drop below $60,000 has real consequences for institutional holders. A significant portion of institutional money, including ETF buyers and large holders, purchased bitcoin between $60,000 and $67,000 over the past year. These buyers now sit at or near their cost basis, meaning any further decline triggers unrealized losses.

On derivatives exchanges like Deribit, over $1.2 billion in notional open interest sits at $60,000 strike put options. Market makers holding short positions will be forced to sell as prices approach this level, potentially accelerating the downside through mechanical selling pressure.

MicroStrategy’s Sale Breaks Confidence

MicroStrategy, the largest publicly traded bitcoin holder, sold 32 BTC this week, its first sale since 2022. The company cited the need to fund preferred-stock dividend obligations. The sale triggered a cascade of liquidations worth hundreds of millions of dollars and shattered investor confidence in the “never sell” narrative that had driven crypto treasury companies through 2024 and 2025.

Bitcoin-treasury companies have collectively lost roughly $62 billion in fully diluted market value since October 2025. The cohort’s combined valuation fell to about $72 billion from a peak of nearly $134 billion, outpacing bitcoin’s own 52% decline and reflecting the unwinding of the digital-asset treasury premium.

Capital Rotation Into AI Stocks

Speculators are abandoning bitcoin for AI stocks and memory chips, particularly in South Korea. The stock market has risen to new records while bitcoin remains under pressure, creating a divergence that challenges bitcoin’s dual narratives as both “digital gold” and a high-beta tech asset.

Meyka rates BTCUSD at C+ with a 12-month forecast of $97,868, suggesting limited recovery potential near current levels. The RSI sits at 18.92, indicating oversold conditions, but the strong downtrend (ADX of 33.98) suggests selling pressure remains intact.

What Analysts Say About the Bottom

Grayscale Research stated that bitcoin needs new sources of buying beyond MicroStrategy to form a sustainable bottom. Analysts at Deribit warned that as price undercuts institutional cost basis, unrealized losses may incentivize rushed selling, especially as the opportunity cost of holding BTC rises against a surging AI equity sector.

Glassnode data shows more than half of bitcoin’s circulating supply is now held at a loss, echoing conditions seen at market lows in 2015, 2019, 2020, and 2022. Some analysts predict the market bottom could occur in Q3-Q4 2026, with prices potentially dropping to around $50,000 before the next major uptrend.

Final Thoughts

Bitcoin at $60,912 faces structural selling pressure from institutional cost basis and derivatives hedges. With Meyka rating it C+ and forecasting $97,868 by year-end, the data suggests further downside risk before any sustained recovery.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.