Bitcoin Drops to US$66,000 as Crypto Market Faces Heavy Losses
The cryptocurrency market entered the beginning of June under dominant selling pressure. Macroeconomic indicators showing persistent inflation, combined with unresolved geopolitical uncertainties, have prompted investors to readjust their risk exposure. The current price correction validates previous cautious projections, as the US$80,000 to US$85,000 resistance area proved to be a strong technical rejection zone.
According to recent trading data, Bitcoin (BTC) has corrected deeply to the level of $66,844.59, recording a daily decline of -5.51% and a significant weekly drop of -11.87%. A similar trend is weighing on Ethereum (ETH), which fell -6.05% in the last 24 hours to $1,861.73. In the altcoin sector, most large-cap assets are in the red; Solana (SOL) and Dogecoin (DOGE) recorded daily declines of -6.82% and -7.20%, respectively. Amidst this downward trend, Zcash (ZEC) emerged as an anomaly, booking a daily surge of +16.30% to $626.65, indicating a specific capital rotation as market participants seek alternative instruments during high volatility.
Geopolitical catalysts, including multi-regional tensions, continue to pressure risky assets. The conflict between the United States and Iran in the Middle East remains unresolved, while tensions between Russia and Ukraine in Eastern Europe have reportedly intensified. These crises continue to shock energy supplies, with Brent crude oil holding steady at high levels of $96.2 per barrel. High energy costs are directly transmitting operational burdens to the industrial and logistics sectors, ultimately worsening the prospects for structural global inflation.
Recent macroeconomic data presents a challenging narrative for monetary policy. US core inflation (Personal Consumption Expenditures/PCE) rose to 3.3%, while the flash estimate for Eurozone inflation also showed persistence at 3.2%. This confirms that inflation remains stubborn, exacerbated by a significant surge in US domestic gas prices, which is expected to distort consumer purchasing power. Furthermore, the latest Job Openings and Labour Turnover Survey (JOLTS) for April showed a heating labour market, with job openings jumping by 731,000 positions compared to the previous month, reaching 7.6 million. The combination of a strong labour market and stubborn inflation has maintained the 10-year US Treasury yield at 4.45% and kept the US Dollar Index (DXY) strong at 99.22.
These economic indicators provide a rational basis for the Federal Reserve’s stance. Given the resilient labour market, the probability of the Fed raising interest rates again is becoming increasingly real. Such tightening would increase borrowing costs and pressure the valuation of risky assets, including the crypto market. Consequently, the fundamental projection for the medium and long term remains unchanged, with the current downtrend aligning with the macro cycle structure. The primary target for maximum capital deployment remains disciplined within the $40,000 to $45,000 price range, projected as a cycle bottom potentially forming in Q3 or Q4 of 2026. A ‘wait and see’ strategy prioritising cash liquidity remains the most relevant approach for now.