Bitcoin rebounded after initially dipping during Asian trading hours, indicating a slowdown in the short-term decline of the crypto market amid pressure on global risk assets. However, US tech stock futures and Asian stock markets continued to weaken, and market risk aversion has not yet eased significantly.
Bitcoin has returned to around $63,500.
According to CoinDesk data, Bitcoin hit a low of $63,065 during the Asian session before recovering to around $63,500. Despite the intraday rebound, as of press time, the price was still down 0.3% from midnight UTC, with a nearly 3% drop over the past 24 hours.
This means that although Bitcoin has temporarily stabilized after the sharp drop in the Asian session, it is still in a correction phase overall, and market sentiment has not fully recovered.
Nasdaq futures fell to a May low.
Alongside the crypto market, the US tech sector also came under pressure. Nasdaq e-mini futures fell to 27,930 points, the lowest level since May, with a cumulative weekly decline of 1.2%. The contract had approached 31,000 points in June before steadily declining.
On Monday, Nvidia's stock price fell by nearly 5%. As a Nasdaq heavyweight, Nvidia's weakness further exacerbated market caution towards the technology sector and put greater pressure on risk assets as a whole.
The sharp decline in South Korean stocks dragged down risk appetite.
Asian markets also weakened significantly in early trading. South Korea's Kospi index plunged as much as 10%, while other regional indices, such as Japan's Nikkei index, also declined, albeit at a relatively moderate pace.
The general decline in stock markets indicates that funds are being withdrawn from highly volatile assets. Against this backdrop, while Bitcoin has recovered somewhat from its intraday lows, it has not yet escaped the pressure from declining global risk appetite.
From a technical perspective, Bitcoin is currently showing some resilience, but its short-term price movements remain closely correlated with US stock futures and regional stock market sentiment. If global risk assets continue to decline, volatility in the crypto market could amplify further.
