Bitcoin fell under $60,000 on Wednesday for the first time since June 10, pulling the broader crypto market down with it. As of Thursday morning, BTC trades near $61,000, down from above $66,000 just a week earlier.

The drop came at the Wall Street open and pushed Bitcoin to its lowest level in two weeks. Bitcoin hit new two-week lows at Wednesday's Wall Street open as traders predicted a rally to a lower high. Ethereum fell alongside it, slipping under $1,600.

The decline did not happen in one move. Bitcoin closed Tuesday at $62,700, its weakest daily close since June 10, after forming a bearish candle that wiped out Monday's gains. That weak close set up Wednesday's break below $60,000.

Several forces combined to pressure the price. A strong US dollar and the prospect of higher interest rates pulled money away from Bitcoin and other risk assets this week, the same pattern that hit gold and silver. A slide in AI-related stocks added to the caution, as investors trimmed exposure to anything seen as high risk.

Traders had also warned that rising short interest and climbing funding rates raised the odds of a sharp move lower, the kind that flushes out leveraged positions on both sides of the market. That is largely what happened. Wednesday's drop below $61,000 triggered roughly $270 million in buy orders and over $125 million in long liquidations within an hour, based on CoinGlass data.

Bitcoin is trading inside a buy-side liquidity zone that traders have watched closely. Velo data showed more than $525 million in buy bids stacked between $60,500 and $61,500 before the drop, much of which has now been absorbed by selling. The remaining bids sit near the lower end of that range, acting as a floor traders are testing in real time.

Above the current price, the setup looks different. CoinGlass data points to more than $1.2 billion in short positions clustered near $63,500, with a larger pool of over $2.4 billion in shorts near $65,000. A bounce strong enough to clear those levels could trigger a chain reaction of forced buying, since short sellers must purchase BTC to close losing positions.

Despite the drop, trader sentiment on X leaned toward a recovery rather than further decline. Trader Killa wrote that range bound conditions hold "till proven otherwise" and pointed to a bounce target near $70,000. Trader RektProof gave a similar outlook, calling $60,000 the floor "for the rest of the month" and expecting a move back toward $70,000 after testing supply zones.

Trader Lennaert Snyder took a more cautious tone. He said he was watching for a deeper test of liquidity near $60,500 and $61,500 before considering long positions, and flagged $63,500 and $64,000 as zones that could attract price before another leg down.

The split in opinion is worth noting. Some traders see $60,000 as a floor that holds through June, with a bounce toward $70,000 as the next move. Others want proof that buyers can defend that level before committing capital.

Bitcoin's drop happened alongside a US-Iran peace deal that failed to lift risk assets. President Trump detailed new terms for oil shipments through the Strait of Hormuz, saying there would be no tolls, insurance costs, or other charges on ships traveling the route. The S&P 500 traded up 0.4% at the time, while the Nasdaq Composite Index turned slightly negative on the day.

The muted stock reaction suggests markets had priced in much of the Iran de-escalation news already. Crypto traders are now watching other catalysts instead, including Micron Technology's earnings guidance and the May Personal Consumption Expenditures index, both due this week and likely to shape near-term risk appetite.

The current setup leaves Bitcoin in a wait-and-see zone. The $60,000 to $61,500 range has attracted real buying interest, backed by hundreds of millions in resting bids. That gives some support to the idea that a floor is forming.

At the same time, momentum indicators have weakened, and the rejection near $66,000 earlier in the week shows sellers still have control at higher prices. A move back above $63,500 would need to clear meaningful short interest, while a break below $60,500 would test whether the demand zone can hold under more selling pressure.

For now, Bitcoin sits roughly 30% below its cycle highs from earlier in 2025, in a market shaped more by leverage positioning and macro caution than by any single piece of crypto-specific news.