Bitcoin Slumps to $61,950 as AI Trade Unwinds, NEAR Plunges 15%
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
bitcoinaicrypto-markets
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Bitcoin fell sharply on June 5, 2026, breaking below the $62,000 support level as a broader selloff in artificial intelligence-related assets intensified. The cryptocurrency traded at $61,950, down 3.73% over 24 hours, with its market capitalization declining to $1.25 trillion. The move was precipitated by a disappointing AI chip revenue forecast from semiconductor giant Broadcom, which pulled major equity indices lower and triggered a risk-off sentiment across digital asset markets. AI-focused crypto token NEAR Protocol led the decline, plummeting 15.06% to $2.15 as of 06:19 UTC today.
The current selloff echoes the Nasdaq's peak-to-trough decline of 14% in April 2025, which was also triggered by a recalibration of AI infrastructure spending expectations. That event saw Bitcoin correct by approximately 18% over three weeks as institutional capital flowed out of correlated high-beta tech and crypto exposures. The present macro backdrop features moderating inflation and stable central bank policy, leaving corporate earnings and guidance as the primary drivers of market volatility.
The catalyst chain began after market hours on June 4, when Broadcom Inc. issued a weaker-than-anticipated forecast for its AI chip division. This announcement immediately pressured Nasdaq futures and Asian equity markets. The negative sentiment swiftly propagated into the crypto market, which has demonstrated an increasing correlation with tech stocks during periods of risk aversion. The selloff accelerated as automated trading systems triggered liquidations in leveraged long positions.
The scale of the decline is evident across multiple metrics. Bitcoin's 24-hour trading volume surged to $52.93 billion, indicating significant sell-side pressure. NEAR Protocol's market capitalization contracted to $2.80 billion amid $1.09 billion in trading volume. The losses extended beyond these two assets, with the broader digital asset market shedding over $80 billion in total capitalization during the session.
Asset | Price | 24h Change | Market Cap | 24h Volume
------|-------|------------|------------|-----------
Bitcoin (BTC) | $61,950 | -3.73% | $1.25T | $52.93B
NEAR Protocol (NEAR) | $2.15 | -15.06% | $2.80B | $1.09B
The divergence in performance highlights the outsized risk for tokens explicitly tied to the AI narrative. NEAR’s decline was more than four times steeper than Bitcoin’s, reflecting its higher beta and sensitivity to shifts in tech sentiment. This underperformance versus the broader crypto market underscores the sector-specific nature of the current downturn.
The selloff signals a potential rotation away from the most speculative corners of both equity and crypto markets. AI-centric crypto projects, which had outperformed during the previous quarter, are now facing the sharpest reversals. Sectors with more established utility, such as decentralized finance (DeFi) protocols and Bitcoin-centric infrastructure, may demonstrate relative resilience if the downturn persists. The immediate second-order effect is a strengthening of the US Dollar Index as capital seeks safety.
A counter-argument suggests this is a temporary correction rather than a structural shift, as long-term demand for AI infrastructure remains intact. However, the price action indicates that momentum-driven funds and algorithmic strategies are actively reducing exposure. Flow data shows institutional investors are the net sellers, while some retail cohorts are attempting to buy the dip. The liquidation of over $300 million in aggregate long positions across crypto derivatives exchanges amplified the downward move.
Market participants should monitor the June 10 expiration of quarterly equity options, which could generate additional volatility for tech stocks and their crypto counterparts. The next critical catalyst is the U.S. Consumer Price Index report scheduled for June 12, which will shape expectations for future Federal Reserve policy. A hotter-than-expected inflation print could exacerbate the risk-off environment.
Technical analysts are watching the $60,500 level as a key support zone for Bitcoin, a breach of which could trigger a test of the May lows near $58,000. For NEAR, holding above its 200-day moving average near $2.00 is critical for maintaining its intermediate-term bullish structure. A sustained recovery in the Nasdaq Composite above its 50-day moving average would be a prerequisite for a broader crypto market rebound. For deeper analysis on market structure, see our report on Bitcoin volatility regimes.
Cryptocurrency markets, particularly altcoins, have developed a strong correlation with technology stocks in recent years. Many investors treat both asset classes as high-growth, risk-on exposures. When a fundamental driver of tech valuations, like AI chip demand, is questioned, the selling pressure often spreads to crypto. This correlation is strongest during periods of market stress when investors reduce portfolio risk uniformly.
The magnitude of this selloff is currently moderate compared to historical precedents. During the March 2024 correction, Bitcoin fell over 20% in a week following a NASDAQ downturn. The current decline of under 4% for Bitcoin suggests a more measured reaction, potentially indicating that crypto markets are developing greater independence from traditional risk assets, though high-beta tokens like NEAR remain strongly linked.
Broadcom's disappointing outlook signals a potential slowdown in the AI infrastructure build-out, which negatively impacts the entire semiconductor supply chain. Companies like NVIDIA, AMD, and TSMC often move in tandem with Broadcom on such news. The effect can also extend to cloud computing providers like Microsoft Azure and Google Cloud, whose growth narratives are heavily dependent on AI service adoption and could see reduced revenue projections.
A recalibration of AI growth prospects triggered a correlated selloff in tech equities and speculative cryptocurrencies.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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