Bitcoin recovers, but remains at a critical point
Bitcoin recovered 0.7% on Wednesday but remains at a critical point following a 9.5% decline since Sunday.
The world’s largest cryptocurrency traded at around $67,000, staying in the middle of a range that has dominated the market between February and April, after failing to break above $81,000 last month, according to CoinDesk.
If Bitcoin falls below $60,000, it could trigger a wave of liquidations and a further drop to around $54,000, a support level seen in both 2024 and 2021.
Meanwhile, Ether (ETH) is trading at around $1,870, up 0.9% since midnight UTC, but this rebound comes after a sharp selloff that pushed it to its lowest level since February.
The U.S. stock market rose again to record highs on Tuesday, according to CoinDesk. This divergence is starting to worry some crypto investors, as crypto and equities have historically tended to move in the same direction.
At the same time, AI-related tokens continued to outperform the broader market. NEAR, RENDER, and FET rose about 9% on Wednesday, following Tuesday’s overall market selloff.