Daijiworld Media Network – New York
New York, Jun 24: Bitcoin tumbled to its lowest level in nearly two weeks as a sharp selloff in technology stocks triggered renewed pressure on risk assets, dragging down the broader cryptocurrency market.
The world's largest cryptocurrency fell as much as 3.9 per cent to $61,877, its lowest level since June 11, before recovering slightly to trade around $62,400 during New York trading hours.
Other major digital assets also recorded significant losses. Ether dropped up to 5.6 per cent, while Solana and XRP declined by as much as 6.4 per cent and 3.5 per cent, respectively.
Market analysts attributed the decline to growing concerns over heavy spending by artificial intelligence companies, which sparked a broad selloff in technology stocks. The tech-heavy Nasdaq 100 index fell 3.3 per cent, reflecting weakened investor appetite for riskier assets.
Losses were even steeper in Asia, where South Korea's Kospi index plunged 10 per cent from its record high, adding pressure to cryptocurrency prices in one of the world's most active digital asset markets.
Tian Zeng, Chief Executive Officer and Chief Investment Officer of crypto trading firm Third Eye, said weakness in Korean equities had contributed to the broader risk-off sentiment affecting digital assets.
Bitcoin had briefly slipped below the $60,000 mark in early June before recovering. However, the cryptocurrency has largely remained below $65,000 throughout the month.
Investor sentiment has also been impacted by continued outflows from US-listed spot Bitcoin exchange-traded funds (ETFs), which have recorded approximately $2.4 billion in net withdrawals so far this month, according to Bloomberg data.
Shares of cryptocurrency-related companies also came under pressure. Strategy Inc., one of the largest corporate holders of Bitcoin, extended its losing streak to five consecutive trading sessions and has fallen more than 20 per cent over the past week.
Meanwhile, cryptocurrency exchange Coinbase Global Inc. declined 4 per cent, while stablecoin issuer Circle Internet Group Inc. dropped more than 5 per cent.
Market participants said Strategy's recent decision to sell a portion of its Bitcoin holdings for the first time in several years has continued to weigh on investor confidence. The company has also been using common stock offerings to finance additional Bitcoin purchases, raising concerns about potential shareholder dilution.
Analysts believe the crypto market may remain volatile in the near term, with investors awaiting fresh policy signals and regulatory developments from Washington that could provide support to the sector.