Bitcoin has officially fallen to the 15th-largest global asset by market capitalization, bringing its total valuation down to $1.287 trillion. The cryptocurrency broke below the $64,000 support level and currently hovers between $62,700 and $63,300. The primary driver for this aggressive retreat is the U.S. Federal Reserve’s decision to hold interest rates steady at 3.5% to 3.75% under Chair Kevin Warsh, pausing expectations for near-term monetary easing to combat 4.2% annual inflation.
Broader global equity markets are retreating under the weight of renewed Middle East tensions. Recent Israeli missile strikes in Lebanon and the cancellation of a vital US-Iran negotiation trip have pushed investors away from risk-on assets, accelerating the cryptocurrency sector’s downward trajectory.
The bearish momentum wiped out heavily leveraged bullish positions across the market. Bitcoin long liquidations hit $113.7 million over a 24-hour period. U.S. spot Bitcoin ETFs mirrored this institutional retreat, logging $82.2 million in direct outflows.
Tech and Precious Metals Overtake Crypto Capitalization
Capital is aggressively rotating out of digital assets and into artificial intelligence infrastructure and safe-haven commodities. Technology and semiconductor companies, including TSMC, Broadcom, Meta, and Tesla, have successfully surpassed Bitcoin’s global market cap ranking. Precious metals like gold and silver are also outperforming the digital currency in the current macroeconomic environment.
Technical analysts indicate Bitcoin’s realized price is on the verge of printing a death cross against its 365-day moving average. The last time this specific bearish technical crossover occurred was during the depths of the 2022 bear market, which preceded a 52% decline in the asset’s value.