{"id":30016,"date":"2026-06-04T11:11:29","date_gmt":"2026-06-04T10:11:29","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/06\/04\/bitcoin-crash-february-low-geopolitical-premium\/"},"modified":"2026-06-04T11:11:32","modified_gmt":"2026-06-04T10:11:32","slug":"bitcoin-crash-february-low-geopolitical-premium","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/bitcoin-crash-february-low-geopolitical-premium\/","title":{"rendered":"Bitcoin Drops to Its Lowest Level Since February as the Geopolitical Premium Evaporates"},"content":{"rendered":"\n
Bitcoin<\/strong> suffered a sharp selloff on Tuesday, touching $61,322<\/strong> intraday \u2014 its lowest level since February 6. The violent move caught markets off guard and triggered a wave of massive liquidations<\/strong>.<\/p>\n\n\n\n Within hours, BTC<\/strong> had erased the entire premium built up during the period of Middle East<\/strong> tensions. A powerful signal that brings a fundamental question back to the fore: is Bitcoin truly a safe-haven asset<\/strong>, or does it remain a risk asset like any other?<\/p>\n\n\n\n On-chain<\/strong> data and technical levels offer clear answers \u2014 and they are worth reading carefully.<\/p>\n\n\n\n The drop was swift and brutal. In less than 24 hours, over $1.1 billion worth of leveraged crypto positions were liquidated<\/strong>, according to data shared by The Kobeissi Letter<\/strong>. BTC<\/strong> briefly broke below $63,000<\/strong> for the first time since February 24, before bouncing back to around $63,300<\/strong> by end of day.<\/p>\n\n\n\n What stands out about this move is its systemic nature<\/strong>. The correction was not limited to Bitcoin<\/strong> \u2014 it swept across the entire crypto market, confirming a strong correlation with traditional risk assets<\/strong>. BTC<\/strong> sold off alongside equities as geopolitical tensions flared, then rebounded with them. This is the behavior of a speculative asset<\/a><\/strong>, not a safe haven.<\/p>\n\n\n\n The break below the Short-Term Holder Realized Price<\/strong> \u2014 the average acquisition cost of recent buyers \u2014 is a significant technical signal<\/strong>. Historically, this level acts as a pivot between bullish continuation and a deeper mean reversion. A confirmed breakdown below it opens the door to a test of $58,000<\/strong> if no solid support forms quickly.<\/p>\n\n\n\n BTC<\/strong> is currently trading within its key support zone between $60,000 and $65,000<\/strong>. The 20-day moving average<\/a><\/strong> was broken to the downside during the flush \u2014 a classic signal of short-term technical deterioration. The price structure remains damaged, but not yet broken beyond repair.<\/p>\n\n\n\n Three scenarios are taking shape depending on how the next few days play out:<\/p>\n\n\n\n On the spot ETF<\/strong> front, the institutional flows<\/strong> that had fueled aggressive accumulation in early 2026 have shifted into bidirectional territory. Several consecutive days of net outflows have broken what had until now been a one-directional buying dynamic. This institutional reversal adds further pressure on the short-term market structure.<\/p>\n\n\n\n This selloff revives a question the market often prefers to sidestep: can Bitcoin genuinely act as a safe-haven asset<\/a><\/strong> during periods of geopolitical stress? Tuesday’s answer was unambiguous. BTC<\/strong> did not absorb the tension \u2014 it amplified it, behaving like a high-beta asset<\/strong> rather than an uncorrelated store of value.<\/p>\n\n\n\n The geopolitical premium<\/strong> accumulated over three months was entirely wiped out within hours. This is not the first time this scenario has played out, and on-chain data from CryptoQuant<\/strong> confirms that short-term holder behavior remains jittery, with weak hands capitulating during the flush below $63,000<\/strong>. According to Standard Chartered, which predicts Ethereum could outperform Bitcoin<\/a><\/strong>, institutional flow dynamics could accelerate this move further.<\/p>\n\n\n\n The upcoming release of US jobs data<\/strong> and speeches from Fed<\/strong> officials will serve as the next directional catalysts. In the meantime, the market remains in wait-and-see mode \u2014 and volatility is showing no signs of taking a break.<\/p>\n\n\n\n$1.1 Billion Liquidated: The Market Takes a Hit<\/h2>\n\n\n\n
<\/figure>\n\n\n\n<\/figure>\n\n\n\nCritical Support Zone: What the Technical Levels Reveal<\/h2>\n\n\n\n
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The “Digital Gold” Thesis Put to the Test Again<\/h2>\n\n\n\n