The ongoing selloff has led to increased demand for protective options, raising the fear gauge significantly.
By Omkar GodboleUpdated Jun 4, 2026, 1:34 a.m. Published Jun 4, 2026, 1:30 a.m. 2 min readMake preferred on BTC's price selloff. (CoinDesk)Key Points:
- Bitcoin's value has dropped to approximately $63,000, marking its lowest point since February, with a decrease exceeding 14% this week and 21% over the past month.
- This downturn has escalated the 30-day implied volatility to its highest level since early April and led to 13 consecutive days of outflows from U.S.-listed spot bitcoin ETFs, indicating a decline in institutional interest.
- Market analysts believe that the absence of new catalysts, liquidity shifts towards sectors like artificial intelligence, and fears regarding Mt. Gox-related sales could lead to further price fluctuations, with critical support levels being observed around $60,000, and some speculate a potential bottom near $50,000.
Bitcoin BTC$66,924.57 continued its downward trend early Thursday, dropping to $63,000 for the first time since February 24. The cryptocurrency has seen a loss of over 14% just this week and 21% over the last four weeks, according to CoinDesk data.
This selloff has heightened interest in protective options, pushing the 30-day implied volatility index BVIV to 53.17, the highest it has been since April 2.
On Wednesday, investors pulled out an additional $50 million from U.S.-listed spot ETFs, marking the 13th day in a row that these funds have experienced outflows, which are often seen as indicators of institutional demand.
Paul Howard, senior director at liquidity provider Wincent, commented via email, "A broad sell-off in crypto, initially triggered by Strategy's transfer leading to ETF outflows, is now being exacerbated by speculative news regarding Mt. Gox liquidations, suggesting a potential for ongoing declines. BTC at $50k is a level some are beginning to mention as a possible bottom this year."
He added, "While there is still a long way to go, the lack of catalysts and the trend of liquidity moving into other tech sectors like AI suggest we should brace for more volatility ahead."
Traders are closely monitoring the $60,000 level for potential support. During the February crash, prices nearly approached that threshold on several exchanges before the selloff slowed down.
Analysts from the data tracking platform Material Indicators stated in an email, "The first significant level I’m observing is the low $60k region, as this is where many critical elements converge. We have the local low around $59.9k and the 200-week moving average in that vicinity." They further noted, "This does not guarantee support; it simply indicates this is a point where the market is likely to face a decision."
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