63 billion in leveraged positions. This sharp “leg down” followed a direct breach of the $70,000 level on June 2, marking the first time the premier digital asset has traded at these depths since April 8. While the broader market shed nearly 5% of its total capitalization in 24 hours, a resilient cluster of altcoins including DEXE, Ethena (ENA), Ondo Finance (ONDO), Worldcoin (WLD), and VVV defied the trend with double-digit gains.
The market carnage has been particularly punishing for retail participants. Coinglass data reveals that approximately 265,000 traders were “wrecked” over the past 24 hours as of June 3, 2026. Long positions accounted for roughly 89% of these liquidations, primarily concentrated in Bitcoin and Ethereum. The sudden downturn intensified as Bitcoin lost the $80,000 support level it had held in late May, eventually diving below $73,000 as the month closed before the current crash toward $65,000.
The descent sparked a notable shift in market structure. Bitcoin’s dominance over altcoins slumped to 56.3% on CoinGecko as of June 2, a decline of approximately 2% over the last week. This weakening grip comes as altcoin demand shifts toward new tokens and specific protocols that are successfully decoupling from Bitcoin’s bearish price action. Despite the volatility, Bitcoin has managed a modest rebound of roughly $2,000 from its local low, currently trading near $66,500.
Specific altcoins rally while major tokens face deep losses
While Bitcoin struggled to find a floor, Ethena (ENA) and DEXE emerged as outliers, posting gains exceeding 20% on the daily chart. Other assets like Ondo Finance (ONDO), Worldcoin (WLD), and VVV similarly recorded double-digit pumps. The divergence wasn’t limited to small-cap tokens; assets like XRP, TRX, and ADA either posted slight gains or significantly smaller losses than Bitcoin’s 6% daily dump. This localized strength suggests that capital is being reallocated into specific ecosystems rather than exiting the digital asset space entirely.
However, the resilience did not extend to the largest altcoins by market cap. Ethereum (ETH) dropped below the $1,900 mark following a nearly 5% daily decline. This move follows a period where Ethereum recovery outlooks have weakened due to persistent technical breakdowns and institutional outflows. Solana (SOL) also faced heavy selling pressure, sliding to $75, while other major tokens including BNB, BCH, and DOGE remained deep in the red as the total crypto market cap fell to $2.37 trillion.
Whale dumping and Mt. Gox transfers fuel the sell-off
Analytics firm Santiment identified “dumping by key stakeholders” as the primary driver behind the current price collapse. Bitcoin whales and sharks—those holding between 10 and 10,000 BTC—reportedly offloaded 24,602 units over the past week. In stark contrast, micro-traders holding less than 0.01 BTC accumulated only 61 units during the same period. This heavy institutional and large-scale selling was further exacerbated by transfers associated with the defunct exchange Mt. Gox, which contributed to the breach of $70,000 on June 2.
Adam Livingston, a Bitcoin author, described the daily dump as a “real puke candle,” suggesting it represents the type of high-volume sell-off that forces retail investors into a state of panic. He noted that traders turned on the asset after seeing market values hit their lowest point since April 5. Furthermore, analysts pointed to Michael Saylor’s Strategy selling as a “prime initiator” of the volatility, suggesting that even significant corporate holders are shifting their positions in response to the current climate.
Analysts warn of further liquidation cascades
The technical outlook remains precarious as Bitcoin trades nearly 47% down from its October peak. Joao Wedson, founder of Alphractal, warned that “liquidation levels below the current price are likely to hit many traders in the next hours.” He explained that as the price accelerates toward these zones, cascading orders can trigger across dozens of exchanges simultaneously, creating a self-sustaining downward spiral. This risk is particularly high given that Ondo Finance and other assets are approaching support levels that may not hold if the broader market continues to bleed.
Skeptics like gold advocate Peter Schiff have fueled the bearish sentiment, claiming there is “way too much complacency” in the market for Bitcoin to be near a bottom. Schiff warned that a loss of the $50,000 support level could lead to a plunge as low as $20,000. While Bitcoin challenged $83,000 only a couple of weeks ago, the rapid 12.5% fall from its local top in May has completely reset market expectations. For now, the focus rests on whether the $1.35 trillion market cap for Bitcoin can stabilize or if the “cascading orders” Wedson fears will dictate the next leg of price action.