Bitcoin hits two-week low as tech selloff sparks risk-off mood
US-listed spot Bitcoin exchange-traded funds have seen US$2.4 billion in outflows so far in June
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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 per cent to US$61,877, its lowest level since June 11. It pared some losses to trade around US$62,300 in New York trading hours.
Other tokens declined as well, with Ether down as much as 5.6 per cent. Solana and XRP fell as much as 6.4 per cent and 3.3 per cent, respectively.
Bitcoin’s decline mirrors the drop in technology stocks that started on Monday in the US, as concerns over artificial intelligence firms’ massive spending re-emerged. The bleak mood is hitting companies like Elon Musk’s SpaceX, fresh off its record-setting initial public offering earlier this month. The tech-heavy Nasdaq 100 sank as much as 3.4 per cent.
Losses were more pronounced in Asia, with South Korea’s Kospi plunging 10 per cent 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 centralised exchanges now.”
Bitcoin briefly fell below US$60,000 in early June before recovering, although the token has spent most of the month trading below US$65,000. US-listed spot Bitcoin exchange-traded funds have seen US$2.4 billion in outflows so far in June, data compiled by Bloomberg show.
Shares of crypto-related companies also slumped. Bitcoin accumulator Strategy fell for a fifth consecutive trading session, and is down more than 20 per cent in the past week. Digital exchange Coinbase Global fell 2.5 per cent and stablecoin issuer Circle Internet Group dropped more than 4 per cent.
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. BLOOMBERG
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