Bitcoin (BTC) has fallen 10% in the last seven days even as U.S. stocks continue to hit record highs.
In early trading on June 3, Bitcoin is trading just below $67,000 U.S., having fallen 5% in the past 24 hours. Over the last week, the largest cryptocurrency has seen its price slide 10% lower.
The downward pressure on Bitcoin and other cryptocurrencies, such as Ethereum (ETH), comes despite other risk assets such as stocks hitting all-time highs over the same period.
Cryptocurrencies trade around the clock: 24 hours a day, seven days a week.
Analysts note that Bitcoin’s price is now in the middle of a range that persisted between February and April of this year after a failed breakout attempt above $81,000 U.S. in May.
Should Bitcoin drop below $60,000 U.S. it would likely trigger a wave of liquidations and a slide toward $54,000 U.S., a level of support seen during crypto selloffs in 2024 and 2021.
The heavy selling in Bitcoin and Ethereum comes as the U.S. stock market rallied to record highs on June 2 as investors pile into the artificial intelligence (AI) trade.
The divergence between stocks and crypto is starting to raise concerns among analysts and investors because the two asset classes have historically moved in tandem.
The ongoing decline in crypto is also raising worries about forced liquidations after $1.7 billion U.S. in leveraged crypto futures bets were liquidated in the past 24 hours.
That’s double the number of liquidations seen on June 1. Bitcoin last hit an all-time high of just over $126,000 U.S. in early October of last year.
