[Digital Today reporter Yoonseo Lee] Bitcoin fell below $65,000, hitting its lowest level in 9 weeks.

On June 3 (local time), blockchain outlet Cointelegraph reported that bitcoin also failed to avoid losses as ceasefire talks were shaken by additional U.S. and Iranian air strikes.

Shock in the derivatives market also continued. Coinglass data showed about 277,000 traders were liquidated over the past 24 hours, with liquidations totaling about $1.83 billion. More than 90 percent were long positions. Liquidations were concentrated in bitcoin and ethereum.

Market participants see it as difficult to explain the latest decline solely by geopolitical tensions. Andri Fauzan Ajima, research lead at Bitu Research, pointed out that the drop was not driven only by Iran-related news. He said leveraged liquidations, large exchange-traded fund (ETF) outflows and a break of technical support levels were the main backdrop, and that Middle East tensions amplified fear.

Ajima expected choppy, volatile trading in the short term. He said the actual support zone was around $64,000 to $65,000, and that a strong rebound rally could emerge if tensions ease or the macro environment improves.

During the steep drop, the cryptocurrency market's total market capitalisation fell by $150 billion. U.S. Central Command said on June 3 it intercepted multiple Iranian ballistic missiles and drones, and carried out defensive strikes on Qeshm Island in response to attacks attempted across the Middle East.

U.S. Central Command said Iran fired multiple ballistic missiles toward neighbouring countries but none hit their targets. It added that 2 missiles were launched toward Kuwait and 3 toward Bahrain. As the military confrontation spread into concerns about escalation, risk-off sentiment across risk assets is seen as having increased.

In the background is an unstable ceasefire phase between the United States and Iran. The two sides have maintained a ceasefire for about 2 months and have held indirect talks over extending it and lifting a blockade of the Strait of Hormuz, but have yet to reach an agreement. In this situation, U.S. President Donald Trump claimed on his social media that speculation that U.S.-Iran talks had been suspended was false and a misreport.

In contrast, Iran's Tasnim news agency reported that Iran would halt all talks with the United States until Israel's attacks on Lebanon stop. Conflicting messages over whether negotiations will continue are also increasing market uncertainty.

Key points to watch are whether support holds in the $64,000 range and whether fund flows deteriorate further. The current decline was presented as the result of a combination of a geopolitical shock, deleveraging, ETF outflows and a technical breakdown. As a result, even if a short-term rebound emerges, whether the Middle East situation and liquidation pressure ease will remain factors that determine market direction.