Bitcoin extended a four-week slide as investors returned to a more cautious macro backdrop.
The token dropped as much as 3.2 per cent to US$66,604 on Tuesday, before paring the decline.
Bitcoin, which has traded like a high-beta tech proxy in recent months, mirrored an earlier move lower in US equities, but failed to keep pace when stocks edged higher.
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“Sentiment is clearly bleak in crypto markets,” said Noelle Acheson, author of the Crypto is Macro Now newsletter. “There is strong progress in adoption by traditional institutions, but this is not reflected in overall prices, which depresses sentiment even more.”
Traders are also weighing rising geopolitical tensions around Iran and renewed debate over whether the economic impact of artificial intelligence could ripple beyond the technology sector.
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The outlook for the US Federal Reserve’s rate cuts is also back in focus after last week’s inflation data.
Flows remain a headwind. US-listed bitcoin exchange-traded funds (ETFs) notched a fourth straight week of net outflows, with US$360 million withdrawn last week.
