Bitcoin tumbled to its lowest point in more than six weeks on Friday, extending a slide that has pushed it far from the highs of early spring. The move came even as US stock markets continued to hit fresh records, widening a divergence that has caught the attention of traders.
Six-week low
The cryptocurrency touched its weakest price since mid-April during the session, according to data from major exchanges. The drop accelerates a pullback that began earlier this month, erasing gains that had followed the April halving. Trading volumes picked up as sellers stepped in, though the selloff has been orderly so far.
Stock market disconnect
The timing is awkward. While Bitcoin was sliding, the S&P 500 and Nasdaq both pushed to new all-time highs, buoyed by strong earnings and a resilient economy. The divergence is a reversal from the pattern seen for much of the past year, where crypto and equities largely moved in tandem. Some market participants had expected Bitcoin to benefit from the same liquidity wave driving stocks higher. It hasn't.
Analyst sees a floor
One analyst tracking the move said the selloff could find a bottom near $72,000, a level that has historically acted as support. That call is drawing attention because the same analyst correctly flagged the April top. Whether $72,000 holds will depend on whether futures positioning stabilizes and spot buying returns at that level. For now, a break below it would open the door to the next major support zone from March.
The question hanging over the market is why Bitcoin is bucking the broader risk-on mood. Some point to lingering regulatory uncertainty in the US, others to profit-taking after the rally in the first quarter. No single catalyst has been identified, but the price action is unambiguous: Bitcoin is going its own way, and it's not the direction bulls wanted.
