Bitcoin fell under $66,000 on June 3, albeit briefly, as record exchange-traded fund outflows and a rare sale by Strategy deepened a selloff that has wiped out billions in leveraged positions.
Markets now imply a 66% chance bitcoin falls below $55,000 and a coin-flip chance of sub-$50,000 prices before year-end.
Bitcoin pressure rises as U.S. equity concentration pulls liquidity into AI, semis and energy markets
Analysts said the market continues to assess geopolitical uncertainty alongside Strategy's recent bitcoin sale.
The jump signals return of fear after two months of calm market sentiment.
Data shows bullish bets related to Bitcoin have suffered a massive amount of liquidations as the asset's price has plunged below the $70,000 mark. Bitcoin Falls Below $70,000 For The First Time Since April Following up on the bearish tone set during the second half of May, Bitcoin has opened June with another drawdown as its price has slipped under $70,000 for the first time since April 7th.
Bitcoin has lost the $69,000 level as selling pressure and market uncertainty combine to test the resilience of a market that has now given back a significant portion of its recovery from the cycle lows.
Economist and market commentator Peter Schiff speculated on Tuesday on the potential implications of Bitcoin's (CRYPTO: BTC) latest crash on the broader risk asset market. Will It Get Worse For Risk-On Assets?
Binance Research says bitcoin's recent weakness may be driven by capital rotating into a small group of hot U.S. equity themes. The firm argues that without a crypto-native crisis, such pressure has often proved temporary.
BTC plunged 6.4% to a 24-hour low of $65,708 and ether broke below $1,900 in Asian trading on Wednesday, just hours after the MSCI All Country World Index set a fresh all-time high on the AI rally.
Microsoft said AI helped speed Majorana 2 development, adding to growing concerns about when quantum computers could threaten Bitcoin's cryptography.
Wall Street strategist Tom Lee framed Mark Cuban's sale of Bitcoin (CRYPTO: BTC) as a sign of “rage-quitting,” the kind of move that, according to him, typically happens at the end of cryptocurrency winter A Sign Of Bottom? During an interview with CNBC, Lee partially agreed with Cuban's rationale that Bitcoin hasn't acted the way it was supposed to.