Key facts
- Bitcoin fell below $63,000 amid a broad risk-off market sentiment.
- Renewed Middle East tensions and a selloff in tech stocks contributed to the decline.
- US stock futures also dropped, mirroring losses in Asian markets like Japan's Nikkei.
- The US dollar strengthened, and gold prices rose above $4,000.
- Privacy coins and some AI tokens showed resilience against the broader market downturn.
Bitcoin experienced a significant pullback, dipping below $63,000, as a broad risk-off sentiment gripped financial markets. Renewed Middle East tensions, including U.S. strikes on Iran, and allegations of Chinese election interference by President Donald Trump contributed to the market uncertainty. This macro-driven selloff mirrored declines in major equity indices, with Nasdaq 100 futures dropping 1.91% and S&P 500 futures slipping 0.96%. Asian markets also suffered, with Japan's Nikkei 225 index falling 4%. In contrast, the U.S. Dollar Index (DXY) rose to 100.75, and gold prices climbed back above $4,000, reflecting safe-haven demand. The semiconductor sector, a key driver of recent tech rallies, experienced a significant selloff, dragging down related stocks across Asia and North America. Despite the overall market downturn, privacy coins like Zcash and Dash showed resilience, and some AI tokens like FET and TAO posted modest gains. The average relative strength index (RSI) across crypto pairs approached oversold territory, suggesting a potential for a relief bounce.