Risk-Off Sentiment Weighs on Bitcoin as Price Slips Below $64,000

Bitcoin's price has slipped below $64,000 after correcting over 2.5% the previous day, according to TMGM trading data. This decline is in line with a broader risk-off sentiment that has gripped markets, fueled by an AI-led semiconductor sell-off.

The deteriorating global risk sentiment has also weighed on other risk assets, including cryptocurrencies. Institutional demand for Bitcoin appears to be weakening, as US-listed spot Exchange Traded Funds (ETFs) recorded mild outflows of $11.64 million on Monday, marking three consecutive days of withdrawals.

Nicolai Sondergaard, Senior Research Analyst at Nansen, noted that the sharp sell-off in Asian and global semiconductor stocks reflected a broader deterioration in risk sentiment after reports suggested China had developed competitive domestic deep ultraviolet (DUV) lithography technology. This has led to institutional investors reducing exposure to technology stocks, which typically do not ring-fence crypto allocations.

Bitcoin's weakness is also being driven by crypto-native headwinds, including stablecoin exchange inflow velocity having fallen to an 18-month low of 21,557 transactions per day before this sell-off. Spot Bitcoin ETFs snapped a seven-session inflow streak, and the long-term holder Spent Output Profit Ratio (SOPR) remains in capitulation territory rather than confirming a bottom.