Bitcoin fell to an almost two-week low as a selloff in tech stocks hit risk assets.
The original cryptocurrency fell as much as 3.9% to $61,877, its lowest level since June 11. It pared some losses to trade around $62,400 in New York trading hours. Other tokens declined as well, with Ether down as much as 5.6%. Solana and XRP fell as much as 6.4% and 3.5%, respectively.
Bitcoin’s decline mirrors the drop in technology stocks that started Monday in the US, as concerns over artificial intelligence firms’ massive spending re-emerged. The tech-heavy Nasdaq 100 sank 3.3%. Losses were more pronounced in Asia, with South Korea’s Kospi plunging 10% from a record high, helping to weigh on prices in one of the world’s most active crypto markets.
“Korean equities broadly have been leading the low breadth move in equities,” said Tian Zeng, CEO and CIO of crypto trading firm Third Eye. “Lots of these are also listed as perps on Hyperliquid and other main centralized exchanges now.”
Bitcoin briefly fell below $60,000 in early June before recovering, although the token has spent most of the month trading below $65,000. US-listed spot Bitcoin exchange-traded funds have seen $2.4 billion in outflows so far in June, data compiled by Bloomberg show.
Shares of crypto-related companies also slumped. Bitcoin accumulator Strategy Inc. fell for a fifth consecutive trading session, and is down more than 20% in the past week. Digital exchange Coinbase Global Inc. fell 4% and stablecoin issuer Circle Internet Group Inc. dropped more than 5%.
Strategy’s decision earlier this most to sell some of its Bitcoin for the first time in several years continues to weigh on sentiment. The largest corporate buyer of Bitcoin has used common shares over the past three weeks to fund purchases, rising the risk of dilution for shareholders.
“Putting MicroStrategy aside, the market needs some positive developments out of Washington,” said Steve Kurtz, global co-head of digital assets at Galaxy. “It’s likely to remain a highly tactical environment in the meantime.”
Written by: Matt Haldane and Muyao Shen @Bloomberg
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