Bitcoin Falls Below $60K as Tech Selloff Deepens Crypto Bear Market

Bitcoin (BTC) fell below US$60,000 (AU$87,000) on Wednesday, sliding to around US$59,000 (AU$85,550) and marking its lowest level since October 2024, as a deepening selloff in technology stocks pulled risk assets lower for a second straight day.

The drop, roughly 5% on the day, was the third time BTC has traded under US$60,000 (AU$87,000) this year. The decline tracked renewed weakness in chip and artificial-intelligence shares, with capital rotating out of crypto and into AI stocks, initial public offerings and prediction markets. 

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Outflows Pressure the Market

The selling extended a sustained retreat from crypto investment products. Bitcoin exchange-traded funds saw about US$182 million (AU$263.9 million) exit this week and are on track for a seventh consecutive week of net outflows. Total assets held in the funds have fallen to roughly US$77.5 billion (AU$112.4 billion), down from about US$113 billion (AU$163.9 billion) at the end of last year.

The pattern points to fading near-term conviction among the institutions that drove much of Bitcoin’s earlier rally, even as the asset’s long-term holders have largely stayed put. With the funds shedding assets week after week, a steady source of demand that had supported prices through earlier dips has thinned, leaving the market more exposed to swings in broader risk sentiment.

Even amid the slide, Strategy purchased 520 BTC for about US$35 million (AU$50.75 million) this week, while Strive Asset Management added 759 BTC at an average price near US$65,850 (AU$95,500).

Analysts note that Bitcoin has proved less volatile than in past bear markets, citing an investor base that is now larger, more liquid and less dominated by retail traders. 

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