Bitcoin has come under significant pressure, falling to around $62,000 as profit-taking in AI-themed crypto assets and a broad decline in risk appetite weigh on the market. The drop represents a nearly 16% retreat from the high above $74,000 reached just a week ago, effectively erasing most of the recent gains. The sell-off in AI-related tokens, which had been a major catalyst for the earlier rally, accelerated the downturn as traders rushed to lock in profits.
From a technical standpoint, market analysts view the $60,000 mark as a critical psychological support level. A break below this threshold could open the door to the next key support around $55,000. Adding to the negative sentiment, U.S. spot Bitcoin exchange-traded funds have now experienced net outflows for 15 consecutive trading sessions, with total redemptions exceeding $4.7 billion. This pattern of sustained institutional selling highlights the cautious stance among large investors.
In a notable development, Strategy (formerly MicroStrategy), a firm renowned for its aggressive Bitcoin accumulation, revealed this week that it had sold Bitcoin for the first time since 2022. The move undermines the long-standing market assumption of unrelenting institutional buying and contributes to the subdued sentiment.