Bitcoin’s (BTC) price appears to be treading water at just over $60,000 U.S. after the largest cryptocurrency fell to its lowest level in two years on June 5.
In early trading on June 8, BTC is trading right around $62,000 U.S., having risen 2% in the past 24 hours.
The recovery comes after Bitcoin dropped below $60,000 U.S. on June 5 and hit its lowest level since 2024 amid a steep decline that was caused by relentless selling by investors.
Cryptocurrencies are coming off one of their worst weeks in years as both individual retail investors and institutions sell digital assets.
Other leading cryptocurrencies such as Ethereum (ETH), Solana (SOL), and XRP (XRP) also experienced sharp declines over the past week amid constant selling pressure.
Ethereum is now trading at $1,650 U.S., well below the key support level of $2,000 U.S. that it was at a week ago.
Analysts say that investors are increasingly moving away from crypto and shifting capital to artificial intelligence (A.I.) stocks and prediction markets.
The heavily hyped initial public offering (IPO) of SpaceX that’s expected to take place this Friday (June 12) is also competing with cryptocurrencies for investors’ attention, say analysts.
Also hurting digital assets is an exodus from exchange-traded funds (ETFs) that track the spot prices of Bitcoin and Ethereum, with billions of dollars flooding out over the past week.
While some analysts are saying that the worst of the crypto selloff is now likely over, others are warning that further declines could be ahead amid a dearth of catalysts.
