Bitcoin falls as traditional markets rally, with S&P 500 and Nasdaq rebounding on strong earnings and forced seller liquidation relief.
Bitcoin slipped below $64,940 after failing to sustain levels above $65,800, contrasting with a broader risk-on sentiment in equities. The decline occurred despite minimal volatility in crypto markets compared to traditional assets.
The S&P 500 and Nasdaq recovered after testing key moving averages, driven by Amazon’s 10% overnight gain and a rebound in AI-related stocks. Earlier, Apple’s after-hours drop of nearly 7% had weighed on sentiment. Meanwhile, South Korea’s KOSPI surged 14%, led by chip stock rallies.
A forced sell-off in AI infrastructure stocks by hedge fund Situational Awareness LP was halted after Citadel purchased its entire portfolio, sparking a quick rebound. Crypto markets, including BTC and Ethereum, remained unaffected by the liquidation, highlighting their decoupling from traditional equity volatility.