Bitcoin extended its decline on Tuesday, tumbling below the $63,000 mark and testing the $61,000–$62,000 support zone. The cryptocurrency was trading around $62,426, recording a 3.47% daily loss and a 5.27% drop over the past week. A cascade of forced selling flooded the market as more than $530 million in leveraged positions were liquidated, reflecting an aggressive unwinding of overheated bets.
The sell-off was not isolated to crypto. A broader risk-off wave washed through financial markets, with the Philadelphia Semiconductor Index plunging 7.6% and the S&P 500 technology sector shedding 3.2%. Companies like Nvidia, Micron, and SanDisk came under heavy pressure as fears over Federal Reserve rate policy and overvaluation in AI-linked stocks drove investors toward de-risking. JPMorgan warned that mechanical fund rebalancing could add up to $165 billion in equity selling by the end of June, compounding the negative sentiment.
Analysts monitoring Bitcoin’s order books noted that the market may not have found its floor yet. Crypto Tony observed that Bitcoin had already touched his downside targets, but liquidity pockets remain clustered below current prices. On the upside, a relief rally could target the $66,000–$67,000 region, where substantial liquidity rests. For now, the health of the $61,000 support level will dictate whether the pullback extends or stabilizes.
