The crypto market came under pressure as tech stock sell-off intensified, with Bitcoin dropping to a new low not seen since October 2024.

BlockBeats News, June 25th. According to the Financial Times, influenced by the selloff in tech stocks, Bitcoin dropped to a 20-month low, and market risk sentiment continued to weaken. Bitcoin fell below $60,000 at one point, with an intraday drop of up to 5.4%, hitting its lowest level since October 2024. Over the past two years, traders have always seen $60,000 as a key support level. This round of decline occurred after a selloff in large-cap tech stocks earlier this week. Traders are betting that the US Federal Reserve will raise interest rates to address inflation. Higher interest rates may suppress risk appetite, prompting investors to reevaluate overvalued assets and turn to relatively safer assets.

In recent years, the trend of cryptocurrency prices has been highly correlated with stocks, but this relationship is currently under pressure. Bitcoin and Solana have fallen by 32% and 47% respectively this year, and the rebound in the stock market has not substantially recovered them. Part of the reason is that retail investors' demand for cryptocurrency has declined, shifting towards volatile AI-related stocks. Gerry O'Shea, Director of Global Market Insights at cryptocurrency asset management company Hashdex, stated that with large public offerings and AI stocks becoming the market focus, the market sentiment remains weak.

Analysts currently do not see any significant catalysts in the cryptocurrency market. The US capital markets are still digesting SpaceX's listing on the Nasdaq earlier this month, the world's largest IPO. AI companies such as OpenAI and Anthropic are also expected to follow suit. Meanwhile, the critical US digital asset regulation bill, the "Clarity Act," is still stalled in the Senate, facing strong opposition from the banking industry and not yet receiving sufficient bipartisan support.