Bitcoin Slides to $66K as Fear Grips Markets

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The crypto market remained under heavy pressure on June 3, and Bitcoin (BTC) was hovering around $66,500 after briefly falling below $66,000 and triggering fresh concerns about a deeper correction. Total crypto market capitalization shed roughly $140 billion over the past day, while several analysts pointed to growing signs of market weakness as the main cause of the downturn. Despite the bearish mood, some on-chain indicators suggest fear levels may be approaching conditions historically associated with market bottoms.

Bitcoin Struggles Near $66K As Liquidation Risks Build

Indeed, Bitcoin traded near $66,500 at the time of writing after touching an intraday low around $65,500, according to the latest market charts on June 3. The asset remained down 4% over the past 24 hours, and most major cryptocurrencies also posted significant losses.

Meanwhile, Alphractal founder Joao Wedson warned that large clusters of liquidation levels remain below the current price. According to the firm’s liquidation heatmap, major liquidity pockets sit around the $64,300 and $63,400 regions, with a concentration of leveraged positions potentially vulnerable if selling accelerates.

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Wedson noted that cascading liquidations can trigger across multiple exchanges simultaneously once key levels are breached, creating sharp moves that feed on themselves.

Market breadth remained overwhelmingly negative. Bitcoin, Ethereum (ETH), BNB, Solana (SOL), XRP, Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Monero (XMR), and several other major assets all traded in the red. Ethereum fell below $1,900, whereas BNB slipped toward $645 and Solana dropped below $76.

On-chain data from Santiment also pointed to continued distribution by large holders. Wallets holding between 10 and 10,000 BTC collectively reduced their holdings by roughly 24,600 BTC over the past week, whereas smaller retail wallets accumulated only a modest amount during the same period.

Fear Surges As Traders Debate The Next Move

Sentiment across crypto social media has deteriorated sharply alongside the decline. Santiment reported that Bitcoin discussions have entered what it described as an “Extreme Fear” phase, with bearish commentary now outnumbering bullish commentary across major social platforms.

Historically, periods when retail sentiment becomes overwhelmingly negative have sometimes coincided with local market bottoms. Santiment noted that crowd expectations currently lean toward sub-$60,000 or even sub-$50,000 Bitcoin, which can occasionally create conditions for a contrarian rebound.

Not everyone sees a recovery ahead. Longtime Bitcoin critic Peter Schiff renewed his bearish outlook, arguing that Bitcoin remains far from a market bottom and reiterating his prediction that a break below $50,000 could eventually lead to a drop under $20,000.

Others urged caution against panic. Bitcoin author Adam Livingston described the latest move as a severe selloff but pointed out that it still falls short of some of Bitcoin’s worst daily declines in recent years.

Traders are now closely watching whether Bitcoin can stabilize above the mid-$60,000 region. A breakdown toward the liquidation clusters highlighted by Alphractal could increase short-term volatility, whereas a recovery above recent support levels may help ease fears that the current correction is turning into something much larger.