The token slid to roughly $59,000 before demand returned, but losses for the week remain substantial across the market. Even as Micron’s upbeat outlook lifted equities and oil prices continued to decline, cryptocurrencies failed to participate in the recovery.
Crypto markets experienced a sharp downturn this week, with bitcoin falling below the $60,000 threshold despite a strong rebound in technology stocks that had previously pressured prices.
Bitcoin dropped to around $59,200 late Wednesday before recovering to near $60,700 on Thursday. The asset is down 2.9% over the past day and 5.4% on the week, according to CoinDesk figures.
Major altcoins posted steeper declines. Ether slipped 2.8% to $1,616, bringing its weekly losses to 7.9%. XRP retreated to $1.07, down 9.2% over the same period, while Solana fell to $68. Dogecoin and Hyperliquid’s HYPE recorded the largest weekly drops, losing 11.9% and 11.7%, respectively. Tron was the only standout among major tokens, posting a 1.9% weekly gain.
At the same time, the AI-driven trade that had earlier dragged crypto lower reversed course overnight.
Micron, the leading U.S. memory chip producer, surged roughly 15% after issuing a sales forecast that significantly exceeded Wall Street expectations, restoring confidence in AI-related investment. Nasdaq 100 futures rose 1.8%, South Korea’s Kospi rallied as much as 6%, and Brent crude fell below $73 per barrel as supply flows resumed through the Strait of Hormuz.
Crypto’s weakness appears increasingly driven by internal factors. The break below $60,000 reflects continued outflows from U.S. spot bitcoin ETFs, a more hawkish Federal Reserve stance, and a U.S. dollar that has climbed to a seven-month high, according to FxPro chief market analyst Alex Kuptsikevich.
A stronger dollar makes dollar-denominated assets like bitcoin more expensive for overseas investors and tends to draw capital away from higher-risk markets.
FxPro also highlighted a broader technical concern: bitcoin is trading close to its 200-week moving average, a key long-term indicator representing about four years of price history.
Previous tests of this level have led to extended periods of weakness rather than quick recoveries—lasting roughly nine months in 2015, six months in 2018, and around six quarters following the 2022 downturn. This pattern suggests the potential for a prolonged “crypto winter” instead of a rapid rebound.
In the short term, Kuptsikevich points to the $61,800–$62,000 range as the next key zone, where a cluster of orders could either fuel a rebound through short covering or act as resistance.
If support fails, $55,000 could become a likely cycle low. He advised traders to focus on risk management rather than attempting to predict direction.
Attention now shifts to upcoming U.S. inflation data, particularly the Federal Reserve’s preferred gauge.
A stronger-than-expected reading would reinforce the Fed’s hawkish stance and the firm dollar, adding pressure on crypto. Conversely, softer data could offer some relief. For now, crypto markets are no longer reacting to oil or geopolitical headlines that dominated earlier in June, instead facing headwinds from ETF outflows and weak demand that equity market gains have not been able to offset.
