- Bitcoin dropped as much as 3.9% to $61,877 — its lowest level since June 11 — before paring losses to around $62,223, as the tech selloff that began Monday in the US spilled into crypto markets.
- Ether fell as much as 5.6%, while Solana dropped 6.4% and XRP declined 3.3%, reflecting broad risk-off sentiment across the crypto complex.
- US-listed spot Bitcoin ETFs have seen $2.4 billion in outflows so far in June, deepening concerns about institutional conviction at current price levels.
- The move mirrors a broader market rout: Nasdaq 100 futures fell ~2.8% Tuesday and SpaceX shed another leg of its post-IPO gains, as AI spending concerns sparked a wave of selling in high-momentum assets.
What Happened?
Bitcoin fell to a nearly two-week low on Tuesday, sliding as much as 3.9% to $61,877 before stabilizing near $62,223 in early New York trading. The drop tracks a broad-based selloff in technology stocks — particularly AI-adjacent names — that began in the US on Monday and rippled through Asian markets overnight, sending South Korean stocks down 10%. Ether, Solana, and XRP each declined sharply as well, underscoring the risk-off tone across the digital asset space. Bitcoin had already briefly dipped below $60,000 in early June before recovering, though it has spent most of the month trading below $65,000.
Why It Matters?
The correlation between Bitcoin and high-multiple tech stocks is on full display. Spot Bitcoin ETFs — a key institutional access point launched in early 2024 — have seen $2.4 billion in outflows in June alone, suggesting that the same institutional investors rotating out of AI names are also trimming crypto exposure. The timing is notable: Bitcoin’s recovery from the early-June sub-$60K low had been fragile, and the current tech rout is testing whether that support holds. The broader crypto market is caught between a still-supportive regulatory backdrop (following recent US crypto legislation) and mounting macro concerns about AI capital spending cycles.
What’s Next?
The key near-term question is whether spot ETF outflows stabilize or accelerate. A continued tech selloff — particularly if SpaceX’s $20B bond debut disappoints or AI spending concerns deepen — could extend crypto’s decline. Conversely, any recovery in Nasdaq sentiment would likely pull Bitcoin back toward the $65,000 range. The June ETF outflow data will be a critical sentiment gauge; sustained institutional selling would be a more bearish signal than retail-driven volatility alone.
Source: Bloomberg
