Bitcoin rebounded from a more than two-month low on Wednesday, rising back above the $67,000 level as investor sentiment remained resilient.
Earlier in the session, Bitcoin had extended its sharp losses after a sell-off by major corporate holder Strategy, which added to bearish sentiment across the market. Ongoing worries over the U.S.–Iran conflict, alongside renewed military tensions between the two sides, further dampened risk appetite across the broader cryptocurrency space.
Bitcoin fell as much as 6 percent to $65,485.2, its weakest level since late March, but later pared losses, trading at $67,386 as of 6:45 GMT.
Strategy Inc sells 32 bitcoins
Strategy Inc revealed on Monday that it sold 32 bitcoins between May 26 and May 31 at an average price of $77,135 per coin, generating about $2.5 million.
Although the sale represented only a small portion of Strategy’s total bitcoin holdings, it still reinforced bearish sentiment in markets already sensitive to weak crypto price action.
Following the disclosure, Strategy shares slid to a near two-month low.
Investors flock to AI stocks
Meanwhile, liquidity appeared to be drifting out of crypto markets ahead of a large initial public offering expected from SpaceX, which is anticipated to launch as early as next week. Investor attention has also been moving away from crypto toward artificial intelligence-related equities, driven by rising optimism about the sector’s growth outlook.
This shift was reflected in continued outflows from bitcoin exchange-traded funds, which have shed more than $3 billion over the past three weeks. Data from SoSoValue showed that bitcoin ETFs recorded nearly $1 billion in outflows across Monday and Tuesday alone, extending a 12th consecutive day of withdrawals.
At the same time, the S&P 500 edged higher to a record close after touching a fresh all-time intraday peak on Tuesday, as investors tracked developments in U.S.-Iran tensions alongside movements in major technology stocks. The benchmark index rose 0.13 percent to finish at 7,609.78, marking its first close above the 7,600 level.
The Dow Jones Industrial Average added 228.91 points, or 0.45 percent, to close at 51,307.79, also setting a new intraday record earlier in the session. Meanwhile, the Nasdaq Composite inched up 0.03 percent to end the day at 27,093.90.
Crypto markets track Bitcoin lower
Broader cryptocurrency markets also moved lower, tracking Bitcoin’s decline, as risk aversion intensified amid ongoing U.S.-Iran tensions.
Ether, the world’s second-largest cryptocurrency, dropped 5.37 percent to $1,875.44, while XRP fell 1.7 percent to $1.2437.
Solana dipped 5.70 percent, Cardano fell 3.51 percent and BNB lost 5.83 percent.
In the memecoin segment, Dogecoin slipped 5.23 percent, while $TRUMP edged down 0.22 percent.
