Bitcoin Drops to Seven-Week Low Amid Geopolitical Tensions and Retail Sentiment Shift

Bitcoin's price dropped nearly 3% to around $71,300 on June 1, 2026, marking its lowest level in seven weeks. The decline coincided with geopolitical tensions as Iran suspended negotiations with the U.S. and threatened to block the Strait of Hormuz, causing oil prices to surge over 7%. While broader market risks weighed on risk assets, retail traders on Stocktwits directed their frustration toward MicroStrategy chairman Michael Saylor after the company's first Bitcoin sale since 2022.

MicroStrategy sold 32 BTC last week for approximately $2.5 million, a move that some retail traders viewed as undermining Bitcoin's role as a hedge asset. The sale amounted to just 0.0038% of MicroStrategy's total Bitcoin holdings of over 840,000 BTC. Meanwhile, billionaire investor Mark Cuban's decision to exit Bitcoin holdings also contributed to growing skepticism among traders.

The escalation in Iran's stance led to a significant rally in oil prices, with Brent crude oil rising over 6% to over $97 per barrel and U.S. West Texas Intermediate (WTI) prices gaining 7.6% to over $94 per barrel. The United States Oil Fund (USO) saw a 7% increase in morning trade. Retail sentiment for oil remained in the 'bearish' zone, reflecting concerns over the potential closure of critical shipping routes.

The selloff in Bitcoin extended to other cryptocurrencies, with Ripple’s XRP (XRP) falling below $1.30, Solana (SOL) dropping below $80, and BNB (BNB) experiencing the largest decline at 6.3% to around $675. Ethereum (ETH) continued its slide below $2,000. CoinGlass data showed over $500 million in liquidations across the cryptocurrency market in the last 24 hours, with $100 million in just the last hour. Bitcoin's price is now 43% below its record high of over $126,000 seen in October 2025, and it has lost over 30% in the last 12 months, down over 18% so far this year.