TLDR
- Bitcoin fell 6.4% to $65,708 in 24 hours, down 12.3% on the week
- Ether dropped below $1,900, Solana fell 9%, and most major cryptos saw heavy losses
- Global stocks hit fresh all-time highs driven by the AI trade rally
- Crypto sell-off followed Strategy’s first bitcoin sale, $3.2 billion in ETF outflows, and a Mt. Gox wallet transfer
- Bitcoin’s $65,000 level is being watched as key support, with $60,000 the next target if it breaks
Bitcoin dropped sharply on Wednesday as global stock markets climbed to fresh records, creating a rare split between the two asset classes.
Bitcoin fell to a 24-hour low of $65,708 in Asian trading, a drop of 6.4% in 24 hours. On the week, bitcoin is down 12.3%.
Ether fell below $1,900 to $1,839, a drop of 7.9% in 24 hours and 11.1% on the week. Other major coins also fell hard.
Solana dropped 9% to $73.25. BNB lost 7.8%, Dogecoin slid 8.3%, and Tron shed 3.4%, according to CoinDesk data.
The one outlier was Hyperliquid’s HYPE token, which held a 19.9% weekly gain despite a 3.1% drop in the past 24 hours.
What Triggered the Crypto Sell-Off
The drop followed a series of bearish events that stacked up over the week.
Strategy made its first publicly disclosed bitcoin sale on Monday. That was followed by a record streak of spot bitcoin ETF outflows that crossed $3.2 billion through Tuesday.
Mt. Gox also transferred $739 million worth of bitcoin to a new wallet on Tuesday. Large Mt. Gox wallet moves are closely watched by traders because they can signal selling pressure.
Stalled US-Iran ceasefire talks added to uncertainty. Brent crude rose for a third straight day as fresh Middle East fighting continued, keeping risk sentiment fragile.
Stock Markets Tell a Different Story
While crypto sold off, stocks moved in the opposite direction.
The MSCI All Country World Index hit a fresh all-time high on Tuesday, driven by the AI trade that has dominated markets all year.
The Philadelphia Semiconductor Index rallied nearly 6% to a record. Tokyo Electron and Taiwan Semiconductor Manufacturing also reached new peaks.
Palo Alto Networks rose after its earnings showed strong demand for AI cybersecurity products. Reports from Dell and HPE earlier in the week also showed AI driving business growth.
SpaceX was reported to be seeking $135 per share for a $75 billion IPO.
On Wednesday, Broadcom, CrowdStrike, and Macy’s are set to report earnings. Investors are also watching ADP employment data ahead of Friday’s May jobs report.
US stock futures were flat on Wednesday morning. Nasdaq 100 futures edged up 0.1%.
Where Bitcoin Goes From Here
Traders are watching the $65,000 level closely. If bitcoin breaks below that, $60,000 becomes the next key target.
If it holds, some traders expect a short-term bounce as overleveraged positions get cleared out.
Bitcoin was trading near $66,280 on Wednesday morning, slightly above the $65,708 low hit earlier in the session.
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