Bitcoin falls under $62,500 alongside US stocks on Iran strikes
Bitcoin dropped below $62,500 in tandem with a sharply lower Nasdaq after fresh military strikes on Iran triggered a broad retreat from risk assets.
Bitcoin fell below $62,500 during Friday’s Wall Street open, extending daily losses to as much as 2%. The decline mirrored a sharp sell-off in US equities, with the Nasdaq Composite Index dropping nearly 2% as geopolitical tensions escalated.
Fresh military strikes on Iran drove investors away from risk-sensitive assets, hitting both technology stocks and cryptocurrencies. The simultaneous drop underscores the persistent correlation between digital assets and equities, as crypto continues to trade in lockstep with traditional markets rather than acting as an independent hedge.
The risk-off sentiment was compounded by disappointing corporate earnings. Netflix shed over 10% at the start of the session, adding pressure to the broader technology sector.
Persistent rangebound trading
For Bitcoin, the reversal meant a swift rejection at three-week highs, pushing the token back into its established trading range. The price action has frustrated traders looking for clear directional momentum.
Market commentators characterized the recent volatility as directionless noise rather than a decisive trend. “Very choppy few days up, few days down kind of price action the last few weeks. No real action anywhere really,” trader Daan Crypto Trades wrote on X, describing the behavior as typical for summer markets.
Others noted that the market is stuck in a repetitive cycle of liquidations and rebounds. “Market just keeps repeating same things,” commentator Exitpump posted. “Dump into passive demand, OI increases with shorts piling up while spot starts buying which leads to bounce.”
Bear market milestones
Despite the short-term chop, longer-term technical indicators suggest the current downtrend may be nearing its final phases. Analyst Rekt Capital highlighted that Bitcoin has converted its 50-month exponential moving average (EMA) into a resistance level, a pattern that historically signals the late stages of a bear market.
“The necessary technical milestone has been achieved,” Rekt Capital wrote. “Which technically indicates that the majority of the anticipated move has already happened.”
Some traders are still anticipating a temporary reprieve before any further downside later in the year. “Still think this looks good for a relief rally in the next weeks - which would give the market room to drop into October without nuking much deeper,” trader Jelle noted.
