• Bitcoin dropped to a two-week low of $61,877, extending losses as a technology stock selloff fueled a broader risk-off mood.
  • Bitcoin ETFs saw $2.4 billion in outflows in June, adding selling pressure amid concerns over heavy AI spending.
  • Major altcoins including Ether (ETH), Solana (SOL), and XRP (XRP) also declined, tracking Bitcoin's downturn.

Risk-Off Mood Deepens

Bitcoin fell to its lowest level in two weeks on Thursday, sliding to $61,877 as a selloff in technology stocks cascaded across risk assets. The decline came amid renewed concerns over the sustainability of heavy spending on artificial intelligence, which weighed on tech sentiment and pushed investors toward safer havens.

The move lower was broad-based, with Ether, Solana, and XRP all posting losses. The simultaneous decline underscores the correlation between cryptocurrencies and traditional risk-on assets in the current environment.

ETF Outflows Add Pressure

Bitcoin exchange-traded funds have seen net outflows totaling $2.4 billion in June, according to data compiled by Bloomberg. The outflows suggest institutional investors are reducing exposure or seeking liquidity, amplifying the downward pressure on prices.

“The ETF outflows are a clear signal that sentiment has shifted,” said one trader, who asked not to be named. “People are pulling back from risk across the board.” Attempts to reach several ETF issuers for comment were not immediately successful.

Technical Levels in Focus

Analysts are watching key support levels around $61,000 to $65,000 as potential zones for a bounce. A break below that range could open the door to a test of $58,000, according to technical analysis from multiple firms. On the upside, resistance is seen near $70,000 to $73,000.

“The next few days are critical,” said a market strategist at a digital asset fund. “If we hold $61,000, we could see a relief rally, but if that breaks, the correction could deepen.”

Broader Market Context

The selloff in crypto mirrors a broader retreat in risk assets, with the tech-heavy Nasdaq 100 falling 2.5% on Thursday. AI-related stocks were among the hardest hit, with Nvidia, AMD, and other chipmakers plunging on concerns that the massive investment in artificial intelligence may not deliver near-term returns.

Bitcoin has historically moved in tandem with high-growth tech stocks, and this week’s slide fits that pattern. The correlation between Bitcoin and the Nasdaq has risen to 0.6, according to data from CoinMetrics.

Altcoins Follow Suit

Ether fell 5% to $3,350, while Solana dropped 6% and XRP slipped 3%. The broad-based decline suggests that the selling pressure is systemic, not confined to a single asset.

“When Bitcoin drops this hard, altcoins tend to get hit even harder,” said a crypto fund manager. “It’s a typical risk-off rotation out of crypto.”

Outlook Uncertain

Short-term, traders are bracing for further volatility, with the potential for a sharp recovery if risk appetite returns. Longer term, analysts remain divided, with some pointing to the potential for a rebound if AI spending concerns ease, while others warn of a protracted correction.

This article was updated to include additional market data. An earlier version misstated the Bitcoin slide as a one-day decline; it actually occurred over multiple sessions.