Bitcoin Plunges “$66,000”! $1.78B Liquidated, 90% of Longs Get Wiped Out, and the Fear Index Crashes to 11

Cryptocurrency Market 6/3 Early Morning Crash: Bitcoin plummeted from last night's high of $71,372, sliding all the way down, reaching a low of $66,316 at 07:00 this morning. Currently trading at $66,890, down 6.18% in 24 hours; Ethereum dropped to a low of $1,839, now at $1,864. CoinGlass statistics show a total market liquidation of $1.78 billion in the past 24 hours, with longs accounting for $1.6 billion, nearly 90%, being wiped out, while the Fear and Greed Index today fell to 11 (Extreme Fear), a 12-point drop from yesterday’s bottom.

(Background summary: Bitcoin sharply dropped from $70,706 "double V bloodbath," Fear Index at 23, daily liquidation of $632 million wiping out longs, ETH falling below $2,000)

(Additional context: MicroStrategy Strategy sold 32 BTC for the first time! MSTR drops 5% pre-market, breaking the "never sell coins" myth)

Table of Contents

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• 💥 $1.78 billion liquidation, 90% of longs slaughtered
• 🔍 Who pushed the crypto market off the cliff? Five triggering factors
• 📉 Altcoins follow suit, SOL and XRP drop simultaneously
• 😱 Fear Index crashes to 11, US stocks hit new highs, funds are shifting

Bitcoin was still hovering around $71,372 last night, but unexpectedly woke up from the dream, plunging directly to $66,316 at 07:00 this morning, a drop of over 7%, currently at $66,890 (24h -6.18%). Ethereum also fell sharply, bottoming at $1,839, now at $1,864 (24h -6.50%). From the near two-week high of $77,999 on May 21, BTC has retreated over 14%; ETH from its peak of $2,147 on 5/22 has also lost 13% in total.

💥 $1.78 billion liquidation, 90% of longs slaughtered

Numbers speak: CoinGlass data shows that in the past 24 hours, the total market liquidation reached $1.78 billion, with $1.6 billion in long liquidations, accounting for about 90% of the total, while shorts only accounted for $180 million. Looking at just the last 12 hours, liquidations totaled $1.39 billion, with longs still contributing $1.25 billion. This bloody storm is almost a one-sided slaughter of longs. The largest single liquidation in the market was $6.1 million, comparable to the most severe crashes this year.

🔍 Who pushed the crypto market off the cliff? Five triggering factors

This crash wasn’t caused by a single black swan but by multiple negative factors stacking up on the same morning:

① Pre-FOMC 6/17 Market Hedging: CME FedWatch shows the market generally expects no change in interest rates at the June meeting. New Federal Reserve Chair Kevin Warsh was officially sworn in on 5/15, and with CPI still sticky at 3.3% and energy prices high, the chance of a rate cut in the short term is nearly zero, prompting institutions to de-risk early.

② Bitcoin spot ETF continuous 11-day outflows: So far, about $3.5 billion has been withdrawn, with institutional funds continuing to retreat, putting pressure on the market.

③ Strategy’s first sale of BTC on 6/1: Michael Saylor’s Strategy (formerly MicroStrategy) sold 32 BTC for the first time on June 1, breaking the long-held belief of "never selling coins," causing a psychological shock far greater than the amount involved.

④ Trump tariffs raised to 15%: The latest tariff measures further dampen global risk sentiment, making crypto assets the first to be sold off.

⑤ Ongoing geopolitical risks: Tensions between Israel and Hezbollah, deadlock in Iran nuclear negotiations, all suppress risk appetite and weigh on the market.

It’s worth noting that BTC’s current price has fallen about 44% from its all-time high of $126,198 in October 2025.

📉 Altcoins follow suit, SOL and XRP drop simultaneously

Mainstream altcoins are all affected:

SOL is currently at $74.97 (24h -7.28%), with a 24h low of $72.73, down 14% from the high of $87.68 on 5/22.

XRP is at $1.2266 (24h -4.80%), with a 24h low of $1.1948, over 11% below its high of $1.38 on 5/22.

😱 Fear Index crashes to 11, US stocks hit new highs, funds are shifting

Market sentiment is shocking today: The Fear and Greed Index is at 11 (Extreme Fear), down from 23 yesterday, a 12-point plunge within a day, indicating investor sentiment has bottomed out.

Ironically, US stocks are hitting new highs: S&P 500 closed at 7,609.78 on 6/2, breaking the 7,600 mark for the first time in history; Nasdaq closed at 27,093, also a record high; Dow rose 0.45% to 51,307. The US stock market is soaring, while the crypto market is bleeding out. Funds are rapidly shifting from Bitcoin and Ethereum into AI and semiconductor concept stocks.

If this divergence between stocks and crypto continues to widen, it will be extremely difficult for the crypto market to rebound on its own in the short term. Before the FOMC decision on 6/17, the deleveraging process in the market may not be over yet.