Bitcoin sinks to $61K as Wall Street braces for SpaceX IPO — and analysts fear crypto bear market

Bitcoin’s price remained subdued at around $61,789.36 on Tuesday, continuing a brutal week of trading that saw it dip below $60,000—its lowest point since October 2024. The decline marks the cryptocurrency’s worst weekly performance since the FTX collapse in 2022, when Sam Bankman-Fried’s fraud scandal triggered a $200 billion market wipeout. Analysts attribute the sell-off to investors pulling funds from Bitcoin exchange-traded funds (ETFs) amid fading hopes for interest-rate cuts, persistent inflation, and a resilient labor market. Jake Kennis of Nansen noted that the downtrend has persisted for months, with bear markets typically lasting years. The broader market also reflected caution, as the Nasdaq fell 1.7% on Tuesday, led by chip stocks. Traders reportedly liquidated assets to fund upcoming tech IPOs, including Elon Musk’s SpaceX, which plans a $1.75 trillion valuation IPO on Friday. Other AI-focused firms like Anthropic and OpenAI have also filed for public listings, drawing institutional capital away from crypto. Strategy, the world’s largest corporate Bitcoin holder, sold 32 Bitcoin in late May for roughly $2.5 million, breaking its pledge to never sell. While the company later bought 1,550 Bitcoin for $101 million, investors remained wary. Technical indicators, including Bitcoin’s drop below its 200-week moving average, further signaled a bearish shift, with analysts at Bitfinex noting that rallies are now being used to exit positions rather than accumulate. William Stern of Cardiff Financial warned that crypto could face more downside until tech hype cools and capital rotates back. Paul Howard of Wincent echoed concerns, stating that the break below the 200-week moving average confirms a bear phase, making the current rally unsustainable.