Crypto Market Drops to $2.15T as Bitcoin Falls, Zcash Plunges

The total crypto market capitalization declined to $2.15 trillion as Bitcoin traded near $62,853 and long liquidations of about $460 million hit leveraged positions. Market participants cited an AI-driven reallocation of capital and broad deleveraging as factors in the selloff, while Zcash suffered a separate protocol vulnerability that accelerated its decline.

Crypto markets lost roughly $40.6 billion in a single session, marking a third straight day of long liquidations that removed leverage from already thin markets. Bitcoin accounted for about $220 million of the liquidations over 24 hours. Technical indicators placed a support level near $63,846 and a lower key level at $59,360; a daily close below $59,360 would expose a further target near $52,974, while reclaiming $63,846 could help stabilize the trend.

MicroStrategy holds 843,706 BTC and was reported to be roughly $10 billion underwater on its position. The company’s chief executive characterized recent price weakness as an ‘AI capital rotation’ rather than a structural impairment. Traders reallocated funds toward AI infrastructure and related assets, a flow that coincided with margin calls and forced selling in crypto.

Ethereum fell below $1,800 after a major bank reduced its 2026 price target for ETH to $4,000 while maintaining a long-term 2030 forecast of $40,000. The broader market has retraced from a peak near $2.72 trillion on May 10 to about a 22% correction. The market has already moved below a common 38.2% retracement level near $2.25 trillion, leaving thinner technical support down to the $2.05 trillion area that held during a prior decline.

Zcash dropped more than 30% after a researcher discovered a counterfeiting vulnerability in the Orchard shielded pool on May 29. Zcash founder Zooko Wilcox confirmed the issue and said the flaw ‘could have been used to create undetectable counterfeit ZEC.’ An emergency fix was completed on June 2. The token fell below the neckline of a head-and-shoulders pattern, with measured downside targets near $356 and $336; the price briefly touched about $380 before a partial rebound. Resistance sits near $456 and the $498 neckline.

Cardano founder Charles Hoskinson announced he will step back from videos, interviews and social posts and reiterated that boosting ADA’s price was not his mission, comments made amid discussion about the network’s direction.

Analysts note that if the market holds the $2.10 trillion and $2.05 trillion levels, buyers may attempt to push total capitalization back above $2.25 trillion and then $2.43 trillion. A break below $2.05 trillion would expose lower targets around $1.95 trillion and $1.74 trillion.