Bitcoin falls to $62,600 as AI stock rout triggers risk-off across markets

Bitcoin slid to a two-week low near $62,600 as a global selloff in AI and technology stocks pushed investors out of risk assets.

Bitcoin fell 1.7% to $62,693 as of 14:30 UTC, extending its weekly decline to 4.5% after a rout in AI stocks triggered a broad risk-off shift across global markets.

"BTC pulled back to the $62,000 level due to broader market caution, as investors reduced exposure to risk assets following a sharp selloff in AI and technology stocks," the CoinSwitch Markets Desk said.

The selloff accelerated after South Korea's Kospi index plunged 10% on Tuesday, its worst session since March, with chip giants Samsung and SK Hynix each falling more than 12%. Nasdaq futures dropped as much as 3% before recovering to a 1.2% decline at the US open. Over $700 million in leveraged crypto positions were liquidated in 24 hours, with longs accounting for roughly $596 million of that total, CoinGlass data shows.

Bitcoin now needs to hold support at $60,000 to avoid a return to a trading range not seen since late 2024, with $52,000 emerging as the next major level to the downside. Resistance sits at $64,200, followed by a stronger supply zone near $65,500 to $67,000.

ETF Outflows Deepen as Liquidity Thins

US spot Bitcoin ETFs recorded net outflows of $227 million last week, extending their negative flow streak to six consecutive weeks. The combined market capitalization of Tether's USDT and Circle's USDC has fallen by over $7 billion since early May to around $260 billion, its lowest level since March, signaling capital is leaving the crypto ecosystem.

"Part of the recent decline may reflect investors chasing opportunities elsewhere," said Paul Howard, director at trading firm Wincent. "There's been an outflow of liquidity, notably from one of the biggest markets, South Korea, as investors exited to fiat to buy AI stocks and tech companies."

Derivatives Signal Bearish Positioning

Bitcoin futures open interest held steady at around 730,000 BTC for the eighth straight day, signaling consolidation. On Deribit, the one-week skew widened to 10.9 vol points in favor of puts from roughly 7 points a day ago, reflecting intensifying downside concerns. Bitcoin's 30-day implied volatility index cooled to 43% from nearly 48% on Tuesday.

Ether fell 3.1% to $1,667, while major altcoins including BNB, XRP, Solana and Dogecoin corrected up to 6.8%. Bitcoin's dominance held near 56.3%, reflecting the broader risk-off rotation.

The Federal Reserve's hawkish stance at last week's meeting — where Chair Kevin Warsh signaled growing support for rate hikes — has lifted real yields and strengthened the dollar, creating headwinds for non-yielding assets including bitcoin. Thursday's US personal consumption expenditures inflation report and the expiration of second-quarter options contracts later this month are the next catalysts on traders' calendars.

This article is for informational purposes only and does not constitute investment advice.