Bitcoin tumbled below $60,000, extending losses amid a tech rout that has spilled into crypto markets. The decline tested a key psychological level, with traders now pricing in a possible crash to $50,000, according to CoinGape. The digital asset's vulnerability to broader market sentiment has challenged its role as a diversification tool, Crypto Briefing reported.
Strategy (MSTR)—the largest corporate Bitcoin holder—plunged more than 10% to a two-year low near $92, wiping out billions in unrealized gains. CryptoQuant warned the firm to stop buying Bitcoin, as reported by Bitcoin Magazine. Meanwhile, Barstool founder Dave Portnoy publicly questioned bullish predictions amid the crash.
The selloff coincided with a filing by a South Korean memory chip giant to raise nearly $30 billion in a U.S. offering, drawing capital away from crypto toward AI-related trades, CoinDesk noted. 21Shares said its earlier prediction that Bitcoin would break its historical four-year cycle has not materialized.
Critics argue the downturn reflects a rotational shift toward AI and tech equities, not a fundamental flaw in Bitcoin's long-term thesis. However, the lack of a cycle-breaking rally suggests the asset remains tethered to macro risk appetite and liquidity conditions.