Bitcoin drops below $70k! MicroStrategy sells coins, and the US-Iran conflict is a double negative, undermining investor confidence

Tensions in the Middle East have triggered a risk-off sentiment, coupled with MicroStrategy selling 32 Bitcoins for cashing out $2.5 million to pay interest, breaking the myth of "never selling coins." The double blow has severely damaged market confidence, leading to a sell-off wave in Bitcoin, which once fell below the $70k mark.

• Crypto City Note: Bitcoin earlier today (6/2) dipped below $70k, reaching a low of $69,643, and has now rebounded above $70,000.

As geopolitical tensions in the Middle East rapidly escalate, along with news of Strategy offloading Bitcoin sparking market concerns, the cryptocurrency market experienced a sell-off today (2), with Bitcoin temporarily retreating to the $70,000 psychological level.

According to CoinGecko quotes, Bitcoin has fallen 3.6% in the past 24 hours, now rebounding to $70,749; Ethereum dropped 0.1% to $1,995; other major cryptocurrencies also under pressure, with BNB down 1.8%, Ripple (XRP) down 3%, and Solana (SOL) down 1.8%.

Middle East clouds loom, high-beta assets bear the brunt

Zeus Research analyst Dominick John pointed out: "The rising tensions between the U.S. and Iran have sparked a risk-off mood in the market. Investors are worried about turmoil in the Strait of Hormuz, leading them to sell off high-volatility 'high-beta assets,' which in turn has dragged down the performance of cryptocurrencies."

On Monday, geopolitical uncertainty in the Middle East intensified again. To protest Israel’s military actions against Lebanon, Iran announced it would suspend negotiations with the U.S. Despite U.S. President Donald Trump later attempting to soothe the market, emphasizing that talks are still ongoing, CNN reported that Trump had a heated dispute with Israeli Prime Minister Benjamin Netanyahu over Israel’s military plans.

Trump posted on social platform Truth Social on Monday: "Our negotiations with the Islamic Republic of Iran are ongoing and progressing quite rapidly."

Strategy "Never Sell Coins" Myth Shattered, Retail Confidence Hit

In addition to the overall economic environment disruptions, market analysts generally believe that Strategy’s latest disclosed coin-selling activity further undermined investor confidence in the crypto space.

According to an announcement released Monday, Strategy sold 32 Bitcoins between May 26 and May 31 at an average price of $77,135 per coin, cashing out about $2.5 million in total. Strategy stated that the main reason for this sale was to raise funds to pay preferred stock dividends.

Crypto exchange BTSE COO Jeff Mei analyzed: "Although the amount of Bitcoin sold by Strategy this time is minimal, it sends a dangerous signal to the market: even one of the largest Bitcoin reserve companies is under financial pressure from recent price declines."

CoinEx chief analyst Jeff Ko also shared a similar view. He believes that although Strategy’s selling scale is insignificant, "the warning sign cannot be ignored." He emphasized:

This breaks the long-standing narrative of the company’s steadfast holding, psychologically damaging retail investors’ confidence and casting a heavy shadow over an already pressured market.

Presto Research director Peter Chung warned that unless Strategy’s next move can inject confidence into the market, skeptics will keep speculating: whether the sale of these mere 32 Bitcoins is truly for "preemptive measures" or a prelude to a "more intense sell-off storm."

Compared to the sluggish crypto market, U.S. stocks continued to hit new highs on Monday, with the S&P 500 rising nearly 0.3%, and the Nasdaq Composite up 0.4%.

However, Asian markets on Tuesday showed a mixed pattern. As of press time, the Nikkei 225 fell 1.64%, South Korea’s KOSPI declined 2.14%; in contrast, Hong Kong’s Hang Seng Index rose 1.01%, and China’s CSI 300 index edged up 0.75%.

Looking ahead, Zeus Research’s Dominick John summarized: "Traders are currently closely watching the latest developments in Middle East geopolitical conflicts; meanwhile, the market’s focus is also on whether Bitcoin can hold the psychological support level of $70,000."

• This article is reprinted with permission from: 《BlockCast》
• Original title: "Geopolitical Turmoil and Strategy Selling Coins Double Hit! Bitcoin Continues to Fall Back Below $70,000"
• Original author: Block Sister Mel