Bitcoin Drops Below $61K as Tech Selloff Deepens

Bitcoin dropped below $61,000 on Tuesday, trading near $61,000 as a fresh wave of selling in technology and chip stocks spilled into crypto for a second straight day. The move extends a slide that has now erased more than half of Bitcoin's value since it hit a record high near $126,000 in October 2025.

The pressure is coming largely from outside crypto. A renewed rout in semiconductor and AI-related shares has pushed investors out of riskier assets, with the Nasdaq 100 falling sharply, and Bitcoin has moved in step. Adding to the weakness, Deutsche Bank now expects two interest-rate hikes in 2026 — a reversal from earlier forecasts for cuts. Higher rates make speculative assets like Bitcoin less attractive compared with cash and bonds, removing a key pillar of institutional demand.

The pain has been acute for companies built around Bitcoin. Strategy, the largest corporate holder, has fallen for five straight sessions and is down more than 20% over the past week, after disclosing its first Bitcoin sale since 2022 — a move that shook its long-standing "never sell" identity.

Institutional demand through funds has also stayed weak. U.S. spot Bitcoin ETFs have now recorded a sixth consecutive week of net outflows, with total withdrawals climbing past $4.4 billion. Sustained redemptions tend to add steady selling pressure and signal that big buyers are on the sidelines.

Market sentiment has slipped into "extreme fear." Traders are now watching the $60,000 zone as the next major support; a clean break below could open the door toward $58,000, while reclaiming $62,000 would be an early sign that selling pressure is easing.

As always, sharp moves like this are not unusual for crypto, and conditions can change quickly.

This article is for informational purposes only and is not financial advice.