Bitcoin tumbles to about $61,000 as long-term holders dump billions and regulatory hopes fade

Bitcoin slid deeper on Wednesday, falling as low as $61,300 its weakest level since February and extending one of the cryptocurrencys most turbulent stretches this year. The decline marks a drop of more than 25% from highs earlier in June and leaves Bitcoin down over 30% for the year, making 2026 one of its weaker starts relative to major risk assets.

Prices have recovered a little since the trough and were trading around $63,000 at the time of writing, but the move is notable not just for its size but for who has been selling. Blockchain analysts say long-term holders typically defined as addresses that have not moved coins for at least 155 days resumed selling after several months of dormancy. In the first days of June, those investors offloaded roughly $2.4 billion (€2.1 billion). A significant slice of that came from holders who bought above $90,000 and had been reluctant sellers as the market cooled.

The sell-off has rippled into the derivatives market. Volmexs 30-day implied volatility index for Bitcoin (BVIV) climbed to 57.4, the highest reading since early April, as traders rushed to buy protective options. Meanwhile, U.S.-listed spot Bitcoin exchange-traded funds widely watched as a gauge of institutional demand recorded a thirteenth consecutive day of outflows on Wednesday, with another $50 million (€43 million) pulled from funds.

Taken together, the combination of long-term holder liquidations, elevated implied volatility and sustained ETF outflows has intensified downward pressure and raised concerns about near-term investor appetite for the asset.

The market weakness is unfolding against a backdrop of political and regulatory uncertainty in Washington. The Digital Asset Market Clarity Act (often referred to as the CLARITY Act) a priority for the crypto industry that aims to split oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission has advanced out of the Senate Banking Committee but still faces significant obstacles.

A separate version of the bill from the Senate Agriculture Committee, which oversees the CFTC, must be reconciled with the Banking Committees text. Lawmakers face a crowded legislative calendar: roughly eight weeks of Senate floor time remain before the summer recess, and the bill could require as much as a full week to move. It is competing for attention with several must-pass measures including surveillance authority bills, immigration funding, housing reform and a farm bill.

Tensions between the banking sector and crypto industry are adding further complexity. Prominent banking executives, most notably JPMorgan CEO Jamie Dimon, have warned that some proposed stablecoin rules could give issuers an unfair advantage if they are permitted to offer yield-bearing products without meeting bank-level regulatory standards. The American Bankers Association, community banks and credit unions have echoed that stance, arguing stablecoin issuers should be subject to the same rules as banks.

Still, some lawmakers remain upbeat. Senator Cynthia Lummis, chair of the Senate digital assets subcommittee, said this week that the U.S. is closer than ever to creating a functioning market structure for digital assets. But whether Congress can reconcile committee differences, resolve industry tensions and find the floor time needed before lawmakers break for the summer remains uncertain.

For now, the combination of real selling from long-term holders, higher derivatives volatility and policy uncertainty has pushed Bitcoin into a corrective phase testing the resolve of investors who have held through prior pullbacks and leaving traders watching closely for signs of capitulation or stabilization.