Bitcoin lost the $60,000 support level during the week ending June 29, according to market maker Wintermute’s latest report. The firm said BTC dropped 5.9% to around $59,300, while Ethereum fell 7.9% to $1,580. Wintermute attributed the slide to fading enthusiasm for AI stocks, a resilient U.S. dollar, and rising rate expectations.
AI-Led Equity Weakness Triggers Risk-Off
The selloff started as the AI-driven rally stalled. The Nasdaq declined 4.5% over five consecutive losing sessions. Semiconductor stocks faced heavy pressure: the VanEck Semiconductor ETF lost 7% in a single day. South Korea’s chip-heavy KOSPI briefly triggered a circuit breaker. Wintermute said investors began questioning AI capital expenditure levels and valuations.
Sticky Inflation and Strong Dollar Add Pressure
May PCE inflation hit 4.1%, the highest since 2023. Markets pushed expected rate cuts further out. The dollar climbed near a one-year high of 101, adding headwinds for risk assets. Bitcoin touched its 200-week moving average after falling more than 50% from its all-time peak of $126,000. Ethereum underperformed, trading near $1,580.
Fear Is Extreme, but Capitulation May Not Be Complete
Wintermute noted sentiment indicators show deepening distress — but not a full washout. The Crypto Fear & Greed Index stayed between 18 and 24, signaling extreme fear. The share of Bitcoin supply held at a loss approached 50%. The firm said cycle bottoms in the past often saw that figure close to 60%, suggesting more pain may be needed.
ETF Outflows and Fading Institutional Demand
Bitcoin ETFs recorded net outflows of approximately $1.8 billion during the week. Stablecoin issuance and buying from digital asset treasury desks also weakened. Wintermute said liquidity indicators have yet to improve.
Strategy Shifts: Conditional Buying Replaces Automatic Accumulation
The report also highlighted recent changes at MicroStrategy (now renamed Strategy). The company introduced a new capital framework, raised STRC’s dividend to 12%, authorized buybacks, and approved potential Bitcoin sales of up to $1.25 billion. Wintermute said the move reduces near-term capital structure risks but signals that corporate Bitcoin demand is becoming conditional rather than automatic.