BlockBeats News, June 25th - According to the Financial Times, driven by a selloff in tech stocks, Bitcoin plunged to a 20-month low, with market risk sentiment continuing to weaken. Bitcoin briefly dropped below $60,000, marking a maximum intraday decline of 5.4%, reaching its lowest level since October 2024. Over the past two years, traders have long seen $60,000 as a key support level. This round of decline occurred after a selloff in large-cap tech stocks earlier this week. Traders are betting that the US Federal Reserve will raise interest rates to combat inflation. High rates may suppress risk appetite, prompting investors to reevaluate overvalued assets and shift to relatively safe assets.

In recent years, the trend of cryptocurrency prices has been highly correlated with stocks, but this relationship is currently under pressure. Bitcoin and Solana have fallen by 32% and 47% respectively this year, and they have not significantly recovered even as the stock market rebounded. Part of the reason is that retail investors' demand for cryptocurrency has declined, turning to ride the volatility of AI-related stocks. Gerry O'Shea, Head of Global Market Insights at cryptocurrency asset management company Hashdex, said that with large IPOs and AI stocks becoming the market focus, market sentiment remains weak.

Analysts currently do not see any significant catalysts in the cryptocurrency market. The US capital market is still digesting SpaceX's listing on the Nasdaq earlier this month, the world's largest IPO. AI companies such as OpenAI and Anthropic are expected to follow suit. Meanwhile, the US digital asset regulation key bill, the "Clarity Act," is still stalled in the Senate, facing strong opposition from the banking industry and has not yet received enough bipartisan support.