Bitcoin Crashes Below $61K as AI Capital Rotation Deepens, June 06

Bitcoin fell to $60,970 USD on June 05, down 4.1% in one day and 27% over the past month. The crash wiped $200 billion from crypto’s market cap in seven days, marking the worst weekly performance since July 2024. Investors are rotating capital into artificial intelligence stocks, particularly ahead of SpaceX’s IPO next week, leaving digital assets behind.

Bitcoin Hits Critical Support as Losses Mount

Bitcoin fell below $61,000 USD for the first time since late 2024, closing at $60,970 on June 05. The week brought a 14.5% loss, with ether dropping 17% and the broader crypto market suffering its worst performance since July 2024. Spot bitcoin ETFs saw $3.45 billion in outflows across 11 consecutive trading sessions, signaling sustained investor exits from digital assets.

AI Boom Siphons Capital From Crypto Markets

Investors are pulling money from bitcoin and other cryptocurrencies to fund positions in artificial intelligence stocks. The Nasdaq rose 34% and the S&P 500 climbed 24% over the past year, while the Nasdaq fell 4% on June 04 as traders fled chip stocks to raise cash for SpaceX’s $1.77 trillion IPO launching next week. Bitcoin maximalists argue this is a temporary liquidity crunch, not a loss of faith in the asset. Mati Greenspan, founder of Quantum Economics, told CoinDesk: “Bitcoin is not facing a bitcoin problem. It’s facing a liquidity problem. AI has become the market’s new obsession, but obsessions fade.”

Privacy Coin Crash Adds Pressure to Sector

Zcash crashed 50% in 48 hours after a security researcher uncovered a critical flaw in its Orchard shielded pool that could have minted unlimited tokens. The emergency hard fork fixed the issue, but Arthur Hayes publicly disclosed that his firm sold its entire Zcash position, adding to selling pressure. Zcash fell from $624 to $309, dragging rival privacy coins monero and dash lower with it.

Technical Breakdown Signals More Downside Risk

Bitcoin’s RSI sits at 18.92, indicating oversold conditions, while the CCI at negative 162.85 shows extreme selling pressure. The Meyka grade of C+ with a HOLD rating reflects the technical deterioration. Meyka’s 12-month price target stands at $97,867.61 USD, but the immediate support level of $60,000 USD—which held in February 2026—is now at risk. A break below would open the door to deeper losses.

Final Thoughts

Bitcoin trades at $60,970 USD, down 27% in one month. With Meyka rating the asset a C+ HOLD and technical indicators flashing oversold signals, the near-term risk remains elevated until capital stops rotating into AI stocks.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.