The crypto market continued its decline during Asian trading hours. Bitcoin fell to $65,708 at one point, and Ethereum fell to $1,839, breaching the $1,900 mark. Meanwhile, global stock markets continued to rise, driven by AI trading, with the MSCI World Index hitting a new high.
Major cryptocurrencies generally weakened
Apart from Bitcoin and Ethereum, most major tokens declined. CoinDesk data shows that SOL fell to $73.25, BNB fell to $636, DOGE fell to $0.0921, and TRX fell to $0.3297.
Bitcoin rebounded to around $66,280 after hitting a low, but has still fallen 12.3% over the past week. Ethereum fell 11.1% this week, indicating significant pressure on the market as a whole.
Stocks hit new highs while cryptocurrencies retreated.
This downturn did not occur in tandem with other global risk assets. Driven by AI concepts, the Philadelphia Semiconductor Index rose nearly 6% on Tuesday, with Tokyo Electron and TSMC shares also hitting new highs, and the MSCI World Equity Index similarly reaching a record high.
The divergence between stock market and crypto asset trends has led the market to focus more on the negative factors within the crypto industry itself, rather than on whether macro risk appetite has weakened across the board.
ETF outflows and transfers put pressure on the market.
Over the past week, the market has digested a number of negative news items, including Strategy's first public disclosure of selling Bitcoin, continued outflows from US spot Bitcoin ETFs, and the transfer of approximately $739 million in assets from Mt. Gox-related wallets.
The report also mentioned that the stalled progress in ceasefire negotiations between the United States and Iran, coupled with the ongoing tensions in the Middle East, has pushed up Brent crude oil prices and made market sentiment more cautious.
$65,000 becomes the short-term focus
$65,000 has become the most watched price range for Bitcoin in the short term. If it falls below this level, the market may turn its attention to the support around $60,000; if it holds this level, a short-term technical rebound is possible.
