Bitcoin 20% June Crash Marks Worst Month Since FTX Collapse
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
bitcoinbtccrypto-crash
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Bitcoin concluded June with a 20% monthly decline, its steepest since the market collapse triggered by the FTX exchange failure in November 2022. The move was cemented by a slide to $58,551 in early trading on July 1. A report on July 1 highlighted that the monthly price chart reveals more severe technical damage than the headline drop implies, erasing gains from the prior three months and threatening a major bull market support level established over a year ago. The cryptocurrency's market valuation stood at $1.17 trillion as of 08:27 UTC today, with $34.10 billion in trading volume over the past 24 hours.
The June sell-off represents the most significant monthly contraction for Bitcoin in over three and a half years, eclipsing pullbacks seen during the regional banking crisis of March 2023 and the Genesis/Gemini settlement volatility of early 2024. The current macro backdrop features elevated real yields and persistent uncertainty over the Federal Reserve's policy path, which has sapped liquidity from risk assets broadly. The immediate catalyst for the late-June acceleration was a wave of miner capitulation and forced selling, compounded by outflows from US-listed spot Bitcoin ETFs that turned negative for the month. This created a feedback loop where falling prices triggered more selling from leveraged positions.
The damage extends beyond a simple price correction. The monthly candlestick closed below the critical 20-month simple moving average, a long-term trend indicator that has acted as reliable support throughout the current cycle. The last sustained break below this level preceded the crypto winter of 2022. the sell-off occurred despite ostensibly positive structural developments, including the launch of spot ETFs in Hong Kong and continued adoption by major asset managers, indicating a shift in market focus toward liquidity conditions over narratives.
The 20% June decline brought Bitcoin's quarterly performance into negative territory, down approximately 15% for Q2 2026. This starkly contrasts with the first quarter's gain of over 60% and the S&P 500's modest 3.5% advance for Q2. The cryptocurrency's 24-hour trading volume of $34.10 billion represents a 40% increase from the monthly average, confirming high capitulation activity. Bitcoin's dominance ratio—its share of the total crypto market cap—fell from 54% to 51% during the month, indicating the sell-off spread to altcoins with even greater force.
| Metric | June 1 Level | June 30/July 1 Level | Change |
|---|---|---|---|
| Bitcoin Price | ~$73,200 | $58,551 | -20.0% |
| Crypto Total Market Cap | $2.68T | $2.29T | -14.6% |
| Bitcoin Fear & Greed Index | 72 (Greed) | 28 (Fear) | -44 points |
The decline pushed Bitcoin's price more than 25% below its all-time high of nearly $79,000 set in March, formally placing it in a bear market by traditional definitions. The liquidation of over $2.5 billion in long futures contracts across major exchanges throughout June far exceeded short liquidations, highlighting the one-sided nature of the unwind. The network's hash rate—a measure of mining computational power—declined by 7%, suggesting miner profitability stress.
The breakdown has immediate second-order effects across the digital asset ecosystem. Publicly traded Bitcoin miners like Marathon Digital (MARA) and Riot Platforms (RIOT) underperformed Bitcoin itself, with average declines exceeding 35% for June due to compressed margins and equity risk premium expansion. Crypto-centric exchanges and brokerages, such as Coinbase (COIN), face near-term revenue headwinds from lower transaction volumes and staking yields. Conversely, stablecoin market caps have grown as investors flee to dollar-pegged assets within the ecosystem, with USDT's supply increasing by 3% in June.
A key counter-argument is that such deep retracements have been common in previous Bitcoin bull cycles. The 2020-2021 cycle saw multiple drawdowns exceeding 20% before resuming its upward trajectory. The current pullback may represent a healthy deleveraging event that removes weak hands and resets derivative markets. However, the risk is that prolonged time below key monthly support alters long-term holder psychology and invites more institutional selling. On-chain data shows exchange inflows from entities typically classified as long-term holders have increased, signaling potential distribution.
Positioning data reveals a sharp reversal. According to CFTC Commitments of Traders reports, leveraged fund net long positions in CME Bitcoin futures fell to a six-month low. Flow tracking for US spot ETFs shows a net outflow of over $900 million for the month of June, reversing the consistent inflows seen since January. This selling pressure has been partly absorbed by buyers in over-the-counter desks and Asian markets, but not at a sufficient pace to stabilize price.
Immediate catalysts include the US non-farm payrolls report on July 3 and Consumer Price Index data for June, due July 11. Any indication of renewed inflationary pressure could strengthen the dollar and further pressure risk assets like Bitcoin. The second-quarter earnings season for major mining companies begins in late July, with guidance on operational survival and hedging strategies being critical.
Technically, the $56,500 to $58,000 zone is crucial near-term support, representing the March 2024 pre-halving consolidation range. A sustained break below this area opens a path toward $50,000. On the upside, Bitcoin must reclaim and hold above $65,000 to invalidate the monthly breakdown and signal a potential recovery. The 50-week moving average, currently near $54,000, is the next major support level if $56,500 fails.
Market participants will monitor Bitcoin ETF flow data daily for signs of institutional buying resumption. A key signal of miner stress easing will be a stabilization or rebound in the hash rate. Regulatory developments, including any clarity on the Ethereum ETF custody rule or digital asset legislation, could serve as positive catalysts if they emerge during the downturn.
Bitcoin has experienced 20%-30% monthly declines during prior bull markets. In 2019, it fell 37% in November. During the 2017 bull run, it saw a 32% drop in September. The current decline is notable because it breaches the 20-month moving average, a line that held during most 2023-2024 corrections. The speed and volume of the sell-off are comparable to the Luna/Terra collapse of May 2022, though the fundamental triggers are different.
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