Bitcoin Drops 17% in Four Days Sparking $4.5B in Liquidations

Bitcoin has experienced a significant decline of 17% over four days, dropping from just under $74,000 to an intraday low of $61,556 on June 4, 2026. This loss contributed to approximately $4.47 billion in total liquidations within the cryptocurrency market.

The recent downtrend in Bitcoin has sparked concerns among analysts regarding a possible further drop into the $50,000 range. They note that the market currently displays weak demand and an increase in bets aimed at downside protection, reflecting bearish sentiment among investors.

Data from derivatives and options markets indicate continued pessimism regarding Bitcoin's near future. A notable development is the negative Coinbase premium, which has been persistent since late April and has widened recently. This suggests a lack of institutional demand from U.S. investors, potentially exacerbated by ongoing geopolitical conditions.

According to Illia Otychenko, lead analyst at CEX.IO, "The primary driver of the selloff remains geopolitical risk." In addition to this risk, the 30-day 25-delta skew for Bitcoin has shifted significantly, indicating that options investors are paying more for downside protection through bearish bets or put options.

Moreover, Bitcoin's open interest has declined from 282,000 BTC to 265,000 BTC, signaling an increase in short positions as new selling pressure mounts. While the overall market sentiment appears negative, there are signs that some investors are still willing to buy dips, as evidenced by ongoing activity in the spot order book.

The combination of increased selling pressure and geopolitical uncertainty raises questions about how low Bitcoin may ultimately go in the coming weeks and whether a rebound can be expected.