The crypto market has seen a flurry of activities this week, but the one thing that stood out the most was Strategy selling 32 BTC, ending its “never sell Bitcoin” policy. That sale created a ripple effect. Bitcoin went below $60,000 over fears that a company that holds 843,706 BTC might sell more, and when BTC tanked, MSTR stock fell below $120.
Cardano was the most-talked-about altcoin this week because its biggest project, TapTools, just closed down, and the community cannot seem to agree whether founder Charles Hoskinson is to blame or not.
JPMorgan also says there is a risk CLARITY will not pass because the mid-term elections happening in November will divert attention.
Bitcoin Briefly Drops Below $60,000 as Crypto Market Liquidations Top $1.8B
CoinGape reported that Bitcoin dropped to $59,130 on June 5, and that is the first time it has moved below the psychological support of $60,000 since 2024.
That drop to $59,130 made $1.8 billion long and short positions to be wiped out from crypto market on June 5, marking the biggest liquidation event since January 31, 2026, as the chart below shows.
Bitcoin alone saw $600 million in liquidations on June 5, and $466 million of this belonged to long buyers that are forced to sell when they are closing their positions.
When you factor in the selling pressure that was coming from long buyers and spot sellers, Bitcoin did not stand a chance in defending the psychological support of $60,000 that had held since October 2024.
But the drop to $59,130 did not just happen overnight, but it has been building up since Strategy sold 32 BTC on June 1 and caused the market panic.
MSTR Stock Crashes After Selling 32 BTC
MSTR stock price has gone down by 18% this week alone, and it closed the market on Friday trading at $120. This drop happened the same week that Strategy said it sold Bitcoin causing selling across the crypto market.
Some analysts have said that the sale is just a drop in the ocean because Strategy still holds 843,706 BTC, and there is no reason to panic.
But Peter Schiff says that what matters is not Strategy selling 0.0037% of the Bitcoin it holds, but rather the 32 BTC might be the first of more bigger sales.
The 843,706 BTC that Strategy still holds is now weighing heavily on its financial outlook because the unrealized loss on Strategy’s BTC holdings just reached another record high of $12.33 billion as Bitcoin hovers around $61,000.
Strategy’s executive chairman, Michael Saylor, has defended this sale after Jim Cramer said that he had murdered Bitcoin, with Saylor responding that it was “only a fresh wound.”
But Benchmark remains undeterred about MSTR stock going down by 18% this week, and it still retains a “buy” rating for the stock, adding that it might reach $570 despite the crypto market dropping.
Cardano Projects Shut Down as Hoskinson “Takes a Break” From Crypto Market
The Cardano community is dealing with the aftermath of June 2, when TapTools said it was closing down. With all its top executives leaving, the project is struggling with a lack of funds.
The decision by TapTools to close down stirred a reaction from Cardano founder Charles Hoskinson, who said that Cardano should brace for more failures in the second half of 2026.
But Hoskison forecasting doom on Cardano has attracted criticism from the community. Some say that he is part of the problem of why these projects are closing down because no new projects are coming there.
The backlash led Hoskinson to say that he will “take a break” and later clarified, saying that does not mean he is leaving Cardano, but he will not be as vocal about it as he used to.
CoinGape notes that these tensions are pulling Cardano down to the lowest price in six years as people sell because of uncertainty about where the project heads.
JPMorgan Flashes CLARITY Act Risk
JPMorgan has warned that the CLARITY Act passage window might be closing, saying that there is a very tight calendar for Congress before the midterm elections in November 2026.
Banks are holding back the CLARITY Act, as they say they do not want exchanges to pay yields on stablecoins because that will mean the crypto market is competing with banks for deposits.
The banks’ opposition towards CLARITY is so intense that JPMorgan CEO Jamie Dimon launched personal attacks against Coinbase CEO and said he would not bow down to him or his company.
Galaxy Digital has now lowered the chances of CLARITY passing to 60%. It says Congress’s lineup of events makes it hard for it to set a date to table the Act on the floor.
The Senate Banking Committee passed the CLARITY Act on May 14, and it is back in the hands of the entire House that will now decide its fate.
