- Bitcoin fell below $70k in the last 24 hours amid renewed tensions between the US and Iran, which could worsen the oil crisis.
- Strategy selling 32 Bitcoins served as a trigger for this crash, as it was the first sale from the company.
- Further, there is a market rotation between cryptocurrencies and stock markets, and with gold, with the latter 2 benefiting from capital fleeing the former.
- However, regulatory clarity in the US is expected to provide short- to medium-term relief for crypto markets.
Bitcoin Crashes Below $70k
Bitcoin has crashed below $70k in the first week of June 2026 after a series of shocks kept prices down. Factors like renewed conflict, oil crisis, low investor confidence, and market liquidity crisis have been acting against Bitcoin.
However, by the end of the year, Citibank predicts the Clarity Act could provide relief to Bitcoin’s price. The bank aims for a bullish price target of $189k.
Top Factors Pulling Bitcoin Price Down
Renewed Tensions Worsen Oil Crisis
The conflict in Iran has resumed again in the first week of June 2026. This conflict could potentially choke 25% of the global oil supply. As a result, there could be inflation as oil is a primary commodity in the global economy.
Strategy Sells 32 BTC
For the first time ever, the Strategy sold 32 BTC in a transaction worth around $2.5 million. This is the first sale from the company since 2022.
The sale comes at a time when Bitcoin has already been running low due to low investor sentiment. At press time, the Bitcoin Fear and Greed Index showed Extreme Fear with an index value of 23.
Market Rotation
Crypto markets have been experiencing a liquidity exodus amid a rotation from crypto to stocks and gold. Market indices like the Nasdaq and the DJIA are near their highs, and so is Gold after a 50% rally since last year. The market rotation is expected to end soon as the Clarity Act provides further regulatory support to crypto.
Liquidity Crisis
Liquidity crisis in the crypto markets has worsened in 2026 due to the lack of rate cuts by the US Federal Reserve. The interest rates at 3.75% are still on the higher side considering historical data, which has been routing market liquidity from Bitcoin to lower volatility assets like bonds and gold.
Clarity Act to Provide Relief
Citibank expects that the Clarity Act could provide market relief to crypto markets. If the act passes in the next few weeks, Citibank expects Bitcoin to reach $189k price by the end of 2026.
The Clarity Act has been in the making since early 2026, but has found a lack of support in the US Congress.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
