Bitcoin weakened sharply on Tuesday, sliding to its lowest level in nearly two weeks in tandem with a selloff across Asian equity markets. According to TradingView data, the BTC/USD pair dropped as low as $61,860 during the day, a price last seen on June 11. The broad-based decline was fueled by turbulence in stock markets and mounting pressure on risk assets.
Selloff in Asian markets intensifies
The retreat in Bitcoin mirrored widespread selloffs in technology shares, which had a significant impact on investor sentiment. South Korea’s main benchmark, the Korea Composite Index, plummeted by 10% at the time of reporting, while Japan’s Nikkei 225 slid nearly 4%. Heightened risk aversion in traditional markets spilled over into crypto assets, pressuring prices even further.
As highlighted by The Kobeissi Letter, South Korea and Taiwan have experienced a remarkable influx of funds in recent months. Since January 2024, equity fund inflows in Taiwan have surged to 155% of assets under management, with South Korea posting a similar figure of 150% during the same span. The Kobeissi Letter, a market analysis newsletter focused on macro flows and investor behavior, underscored the extraordinary draw of these markets among global investors.
Since January 2024, equity fund inflows in Taiwan have reached 155% of assets under management, with South Korea closely following at 150% over the same period, according to The Kobeissi Letter.
Attempts to reclaim the $65,500 level in Bitcoin faltered the previous day. Analyst Lennaert Snyder noted prices sharply reversed course after briefly tapping liquidity around $65,000. Snyder is watching the $60,000 region for potential long entries but cautioned that deeper pullbacks could still materialize before any rebound takes hold.
| Asset or Index | Level or Change |
|---|---|
| Bitcoin | $61,860 |
| Korea Composite | 10% drop |
| Nikkei 225 | Around 4% drop |
| Unsuccessful BTC attempt | Above $65,500 |
Analysts flag new potential lows
Market watcher CryptoReviewing pointed out that Bitcoin remains stuck in a bearish technical formation, suggesting the recent period of sideways price action could soon break to the downside. In analyses featured in the report, $54,000 was cited as a key target if the selloff deepens further.
QCP Capital, despite a week expected to be turbulent, noted that crypto volatility has so far shown a muted response and that the broader outlook remains largely unchanged.
Volatility expectations stay muted in the options market
According to a recent QCP Capital market review, expected volatility in digital assets has yet to show any significant spike. The firm noted that, despite a packed calendar of events, signs of fatigue are surfacing in the options market, with many traders continuing their search for a compelling catalyst. QCP Capital is recognized for its focus on digital asset trading and analysis.
The company also commented that seasonal factors may influence behavior ahead of Friday’s quarterly options expiry. According to their analysis, implied volatility tends to soften historically after major quarter-end expiries, likely due to option writers reallocating their capital once contracts are settled.
Taken together, this complex backdrop shows that the short-term direction for Bitcoin is being shaped not only by spot price action but also by shifting expectations in the derivatives markets. For now, the combination of intense selling pressure in Asian equity markets and a cautious stance in the crypto options market have emerged as key factors constraining appetites for risk.
