Bitcoin Market Update (June 2026)

## 1. Price Performance: Ongoing deep correction, high nearly halved

1. **Current price:** Bitcoin is currently quoted at **$63k–$64k**. On **June 3**, the intraday low went down to **$65,700**, setting the lowest point since **February 2026**.
2. **Decline data**
- Compared with the historical high of **$126k** in **October 2025**, the drop is nearly **50%**; the price is close to being cut in half.
- The cumulative decline in **2026** exceeds **23%**; in the past **7 days**, it has fallen by about **13.58%**, with weakness continuing for multiple months.
- The early-June sharp selloff triggered massive liquidations across the entire market: about **$1.78 billion** of forced liquidation in a single day, nearly **280,000** investors liquidated, and the largest single liquidation is equivalent to about **RMB 186 million**.
3. **Triggers for the decline**
① Geopolitical conflicts increased the risk of safe-haven capital withdrawing from risk assets; ② **Strategy**, a leading institution, dumped Bitcoin in large size; ③ Market leverage concentrated on deflating the bubble, with capital diverted from US stocks; ④ **Fed rate-cut expectations were pushed back**, and a stronger US dollar suppressed cryptocurrency prices.

## 2. Global industry and regulatory environment

1. **Overseas:** Compliance is taking hold in some regions, with institutional players diverging

- **United States:** Spot Bitcoin ETFs have become a normalized, regular trading product, but recently ETF fund flows shifted from net inflows to phased outflows; Congress is moving forward with a crypto bill to clarify regulatory authority and responsibilities, and repeated fluctuations in regulatory policy have disrupted market sentiment.
- **European Union:** MiCA crypto regulations are fully implemented; exchanges operate under licenses and the compliance framework has improved, but derivatives regulation is still being tightened continuously.
- **Small countries such as El Salvador** still allocate Bitcoin into foreign-exchange reserves, but the pace of new purchases has slowed.

2. **China policy (key): Fully ban trading and speculation, with no compliance room**

In **February 2026**, the People’s Bank of China and eight other departments jointly released a statement clarifying that: **Bitcoin and other virtual currencies are not legal tender**. Any exchange, trading, mining, entrusted investment, or offshore platform traffic redirection involving any virtual currency within China is an illegal financial activity and is **not protected by law**:

1. Prohibit financial institutions and payment platforms from docking virtual-currency funds.
2. Crack down hard on domestic entities bypassing regulations to trade crypto abroad and on cross-border tokenized fundraising.
3. Participation in Bitcoin trading is not protected by China’s laws; losses of principal, frozen funds, and fraud risks are all borne by the participant.

## 3. Industry chain and fundamentals

1. **Total scarcity:** More than **20 million** Bitcoins have already been mined. With only about **1 million** left to reach the **21 million** total supply cap, block rewards decrease year by year; however, the scarcity characteristic is unlikely to reverse the downward trend in the short term.
2. **Technological development:** The **Lightning Network** (Layer 2 scaling) continues to iterate, improving on-chain transfer efficiency, but the scale of application adoption is limited and cannot drive up prices.
3. **Capital characteristics:** Institutional capital is splitting; large funds reduce holdings when prices rise. After retail investors enter to buy the dip, many are trapped on a large scale, making the market’s speculative nature especially prominent.

⚠️**Important risk reminder**

China has explicitly prohibited virtual-currency trading and speculation. Bitcoin can experience explosive surges and crashes, lacks support from real value, has no regulatory backstop, and is extremely vulnerable to being used for money laundering and scams. We do not recommend participating in any Bitcoin buying or selling, or making any investments.