Bitcoin Extends Pullback as Global Risk Sentiment Sours

Key Moments

Risk-Off Mood from Tech Sell-Off Hits Crypto

Bitcoin (BTC) is deepening its recent decline, changing hands below $64,000 on Tuesday after shedding more than 2.5% in the prior session. The move comes as investors pivot away from risk assets, with digital currencies falling alongside technology shares.

Global sentiment weakened on Tuesday as doubts grew over the scale of financial returns from heavy Artificial Intelligence (AI) spending, sparking broad selling in semiconductor stocks. The technology-led pullback started on Wall Street and spread into Asian markets, where investors moved toward perceived safe havens, lifting bond prices.

Crypto assets have been caught in this risk-off rotation. Bitcoin slipped under $64,000 on Tuesday, mirroring the pressure on other growth-focused assets.

The risk-off backdrop also fueled a sharp wave of forced liquidations in the crypto derivatives space. According to Coinglass data cited in the article, more than $600 million in leveraged positions were unwound over the past 24 hours. Long positions accounted for 87.88% of these liquidations, underscoring the extent of bullish leverage that has been washed out.

In an exclusive discussion with FXStreet, Nicolai Sondergaard, Senior Research Analyst at Nansen, linked the steep drop in Asian and global semiconductor shares to a broader shift in risk appetite. He referenced reports suggesting that China had developed competitive domestic deep ultraviolet (DUV) lithography technology, potentially challenging the entrenched position of Western providers such as ASML.

Sondergaard explained that the risk-off swing spilled into crypto markets because institutional investors trimming exposure to technology stocks typically do not isolate their crypto allocations. Consequently, Bitcoin moved in tandem with other risk assets, sliding to around $63,100 during early Asian trading.

Crypto-Native Headwinds Add to Selling Pressure

Beyond cross-asset sentiment, Sondergaard pointed to several on-chain and flow-based indicators that have been weighing on Bitcoin. He highlighted that stablecoin exchange inflow velocity had already fallen to an 18-month low of 21,557 transactions per day prior to the latest decline, a drop of 56% from the range that underpinned last year’s rally.

Spot Bitcoin exchange-traded funds had just ended a seven-session inflow streak, while the long-term holder Spent Output Profit Ratio (SOPR) remained in what he described as capitulation territory rather than signaling a durable bottom.

“Nansen data shows spot taker buy ratios running 25 to 30 percentage points above perpetual taker ratios across all timeframes, meaning the derivatives selling is being absorbed by spot buyers. Distribution rather than panic, which keeps downside orderly but removes the conditions for recovery before this week’s macro sequence resolves,” concluded Nicolai Sondergaard.

ETF Flows Signal Softening Institutional Appetite

Signs of weakening institutional participation are also emerging. Data from SoSoValue shows that US-listed spot Bitcoin ETFs registered net outflows of $11.64 million on Monday, extending the run of withdrawals to three consecutive days. The article notes that if this pattern of outflows persists and accelerates through the week, Bitcoin may see its correction deepen.

Technical Picture: Bitcoin Trades Below Major Moving Averages

Bitcoin is quoted at $63,478 at the time of writing on Tuesday, slightly lower than Monday’s close. The near-term technical tone remains bearish, with BTC trading under all key Exponential Moving Averages (EMAs). The 50-day EMA at $64,971, the 100-day EMA at $67,6765 and the 200-day EMA at $73,742 are all positioned above spot levels, suggesting that bounces are likely to encounter selling interest while price stays capped beneath this cluster of longer-term trend measures.

Momentum indicators on the daily chart are also tilted to the downside. The Relative Strength Index (RSI) is hovering just below the neutral 50 line, and the Moving Average Convergence Divergence (MACD) remains in negative territory. Together, these signals indicate that recovery efforts may struggle to build momentum in the short term.

On the upside, initial resistance is identified at a horizontal level near $64,004, closely followed by the 50-day EMA at $64,972. A decisive move above these hurdles would open the way toward the 100-day EMA around $67,676, with the 200-day EMA at $73,743 seen as a more medium-term objective. Farther up, horizontal resistance at $84,410 stands out as a key longer-term reference point if buyers eventually regain firm control.

On the downside, the current area is described as a relatively unprotected zone, with limited nearby technical support. If Bitcoin’s decline continues, the move could potentially extend toward the yearly low of $57,800, which was reached on July 1.