Bitcoin dipped on Wednesday morning, falling to its lowest level since February. The cryptocurrency dropped by 2.3% to a low of $65,385, just as global stock markets were soaring. While the S&P 500 and the Nasdaq 100 hit record highs on Tuesday and Japan’s Nikkei 225 reached an all-time high on Wednesday, capital appears to be flowing out of digital assets. At the time of writing, one bitcoin is worth just over $66,500.
According to the trading desk at QCP, this trend is being driven by a rotation of liquidity. Both professional asset managers and traders specialising in crypto are being drawn to the stock markets, which currently offer more attractive growth stories.
Specifically, investors may liquidate their bitcoin positions to capitalise on high-profile opportunities in the private market and on anticipated stock market flotations of major companies such as Anthropic, OpenAI and SpaceX.
Technical analysts are closely watching the $65,000 threshold to assess the stability of the asset. Jonathan Krinsky of BTIG suggests that holding this level is crucial to avoid a steeper decline towards the year’s lows, around $60,000.
Similarly, QCP identifies a primary support zone between $63,000 and $64,000, echoing buying behaviour observed earlier this spring. If the price were to fall below those levels, it would likely test the $62,000 mark, followed by the key psychological barrier of $60,000.
If the downward momentum continues beyond that, the next major support area is expected at $58,000.
Business AM
Ltd
