Bitcoin experienced a sharp decline, falling below the $66,000 mark during Asian trading hours, with prices dipping as low as $65,426. This drop represents a 6.4% loss over the past 24 hours and a 12.3% decrease on a weekly basis. The supporting evidence appears in TradingView.
Ethereum also faced significant pressure, sliding below $1,900 to reach $1,839, while other major altcoins like Solana, BNB, Dogecoin, and TRON saw steep losses.
Despite global stock markets hitting new highs fueled by an artificial intelligence rally, the cryptocurrency sector diverged sharply, reflecting increased selling pressure and risk aversion among investors.
ETF Outflows and Large Bitcoin Sales Amplify Downtrend
One of the primary catalysts behind Bitcoin’s decline has been substantial outflows from spot Bitcoin ETFs, which have surpassed $3.2 billion as of Tuesday. This trend has intensified selling pressure across the crypto market.
Adding to the bearish sentiment, Strategy’s recently disclosed Bitcoin sale on Monday unsettled traders and investors. Furthermore, a wallet linked to the Mt.
Gox bankruptcy transferred $739 million worth of Bitcoin to a new address on Tuesday, further dampening investor appetite.
Geopolitical Risks and Macro Factors Weigh on Crypto
Heightened geopolitical tensions, including stalled ceasefire talks between the US and Iran, have contributed to a risk-off environment. Brent crude oil prices have climbed for three consecutive days, underscoring growing macroeconomic pressures that negatively impact the crypto market.
Contrasting Trends Between Crypto and Equities
While cryptocurrencies struggled, global equity indices soared to record levels. The MSCI All Country World Index reached historic highs, propelled by an ongoing AI-driven rally.
Semiconductor stocks, such as Tokyo Electron and Taiwan Semiconductor Manufacturing, also hit new peaks. S&P 500 and Nasdaq 100 futures hovered near all-time highs, signaling a rotation of capital from crypto assets to technology and semiconductor equities.
Key Support Levels and Market Outlook
Bitcoin’s immediate critical support lies around the $65,000 level. Maintaining this threshold could pave the way for a short-term rebound once leveraged positions are cleared.
However, a sustained break below $65,000 would increase the likelihood of a further decline toward $60,000, which would become the next major support zone.
Intraday volatility remains elevated, with Bitcoin trading between $65,708 and $70,907 on Wednesday morning, reflecting heightened market uncertainty.
Among the top cryptocurrencies, Hyperliquid was the only major asset to show relative strength, posting a 3.1% daily decline but maintaining a 19.9% gain over the week at $71.98, indicating selective resilience amid widespread selling.
