Key Moments
- Bitcoin fell to $61,300, its lowest level since February, before stabilizing near $63,000.
- Long-term holders sold about $2.4 billion (€2.1bn) of Bitcoin in early June, including coins bought above $90,000.
- US spot Bitcoin ETFs logged a thirteenth straight day of outflows, with another $50 million (€43mn) withdrawn.
Deepening Price Decline Hits Bitcoin
Bitcoin’s downturn intensified on Wednesday as the cryptocurrency dropped to roughly $61,300, marking its first move to that level since February and extending one of its most volatile stretches this year.
The token is now down more than 25% from its peak earlier this month and over 30% since the beginning of the year, positioning 2026 as one of its comparatively weaker years against other major risk assets.
By the time of publication, Bitcoin had recovered part of the intraday loss and was trading around $63,000.
Long-Term Holders Shift From Dormant to Active Selling
Analysts observing on-chain activity highlight that the current downturn is notable not only for the magnitude of the price move but also for who is driving it.
Long-term holders – typically defined as investors whose Bitcoin has not moved for at least 155 days – have turned into active sellers after largely staying on the sidelines from February through April.
During the first few days of June, these investors sold approximately $2.4 billion (€2.1bn) of Bitcoin. A significant share of that volume came from holders who had entered the market at prices above $90,000, a group that had mostly refrained from selling even as the market had been gradually weakening for months.
Derivatives Volatility Jumps as Traders Seek Protection
The pressure has also spilled over into derivatives. Volmex’s 30-day implied volatility gauge for Bitcoin, the BVIV index, rose to 57.4, its highest level since early April, as derivatives traders moved to buy options for downside protection.
Persistent Outflows From US Spot Bitcoin ETFs
Flows into exchange-traded products tied to Bitcoin have also turned negative. US-listed spot Bitcoin exchange-traded funds registered their thirteenth straight session of net redemptions on Wednesday.
Investors withdrew an additional $50 million (€43mn) from these vehicles, which are widely monitored as an indicator of broader investor sentiment toward the asset.
Market Metrics Snapshot
| Metric | Latest Detail |
|---|---|
| Intraday low | $61,300 |
| Recent trading level | around $63,000 |
| Drawdown from monthly high | more than 25% |
| Decline since start of the year | over 30% |
| Long-term holder selling (early June) | $2.4 billion (€2.1bn) |
| BVIV 30-day implied volatility | 57.4 |
| Latest US spot Bitcoin ETF outflows | $50 million (€43mn) |
Regulatory Outlook: CLARITY Act Faces Tight Window and Disputes
Bitcoin’s price retreat is unfolding alongside mounting regulatory uncertainty in Washington, where the Digital Asset Market Clarity Act (CLARITY Act) – a central legislative objective for the crypto sector – is encountering resistance in the US Senate.
The proposal, designed to establish a framework for digital asset oversight by dividing responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), secured a narrow bipartisan endorsement from the Senate Banking Committee on 14 May.
Despite that committee-level approval, the legislation still must be aligned with a separate version drafted by the Senate Agriculture Committee, which has jurisdiction over the CFTC. Key points of contention between the two committees remain unsettled.
Legislative Calendar Poses Major Challenge
The timing of the legislative process is emerging as a critical constraint. Only about eight weeks of Senate floor time remain before lawmakers depart for the summer recess and shift their focus toward midterm election campaigns. The CLARITY Act could occupy as much as a full week of that limited schedule.
The bill is also vying for attention with several other high-priority items, including legislation on surveillance authorities, immigration-related funding, housing policy changes and a farm bill.
US Treasury Secretary Scott Bessent pressed senators on Wednesday to approve the CLARITY Act before the summer break. Appearing before the Senate Finance Committee, he said he anticipated the bill’s passage and characterized it as part of broader efforts to make the US “the innovation capital of the world”.
Stablecoin Rules at Center of Industry Divide
Prospects for the legislation are further complicated by a very public dispute between traditional financial institutions and the crypto industry regarding the oversight of stablecoins.
JPMorgan CEO Jamie Dimon has been one of the most outspoken opponents, contending that stablecoin issuers would enjoy an undue benefit if they can provide yield-bearing products without adhering to the same regulatory regime that applies to banks.
“If you want to be a bank, be a bank,” Dimon stated in a Fox Business interview. The American Bankers Association, community banks and credit unions have all aligned with that position.
On the other side, US Senator Cynthia Lummis, who leads the Senate’s digital assets subcommittee, offered a more hopeful outlook, posting on social media on Tuesday that lawmakers were “closer to a functioning digital asset market structure than we have ever been.”
Whether Congress can navigate a compressed schedule and bridge the divides between regulators, the banking sector and the crypto industry remains unresolved.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
