Bitcoin decouples from tech stocks; $60,000 retest possible

Bitcoin dropped about 7% on Monday after it failed to reclaim the $67,200 level, triggering roughly $330 million in liquidations of bullish leveraged positions. The move broke a short-term correlation with the Nasdaq 100, which traded near its record high.

Demand for leveraged long positions had eased since a sharp sell-off from $73,700 to $61,300 over three days in early June. Traders said the earlier decline left positions more cautious and the failed test at $67,200 accelerated selling that depressed perpetual futures funding and forced liquidations across exchanges.

Equity markets showed strength driven by artificial-intelligence focused stocks. Chipmakers and tech suppliers posted positive sessions; Intel rose about 10% after announcing a partnership with Apple on processors, while firms such as Micron and SK Hynix moved closer to $1 trillion valuations. A recent large IPO and follow-on activity in the AI sector drew fresh capital into technology names.

Macro data and market moves also affected flows. US crude oil fell to about $74, its lowest level in roughly 15 weeks after a memorandum of understanding between US and Iranian leaders. US continuing jobless claims held at 1.81 million. The US dollar strengthened against other currencies and the five-year Treasury yield remained near 4.21%.

Those conditions made fixed-income assets relatively more attractive than non-yielding assets. Gold declined about 3.3% over the same period as Bitcoin weakened.

Some analysts note a retest of $60,000 cannot be ruled out as capital rotates into AI-focused equities and as higher yields and dollar strength weigh on assets that do not pay yield. Funding rates on perpetual futures have cooled since early June, reflecting lower appetite for leveraged longs.

Institutional involvement in Bitcoin remains sizable. US-listed spot Bitcoin exchange-traded funds have accumulated more than $102 billion in assets, and major banks have introduced Bitcoin investment offerings for clients. Market participants are monitoring ETF inflows, futures funding levels, and macro indicators for signs of renewed buying.

Joe Carlasare, a commercial litigator and Bitcoin supporter, wrote on social media that the narratives that once drove demand for Bitcoin have broken down and that current trader sentiment feels worse than during the FTX collapse.

Traders and portfolio managers are watching whether renewed institutional buying can offset flows into high-growth tech positions and whether Treasury yields and dollar strength reverse. Analysts say a failure to hold recent highs would increase the chance of a test near $60,000.