Daily Market Update: Bitcoin Stuck at $63,000 as AI Fears Hit Stocks and Crypto Markets

TLDR

• Bitcoin is trading around $62,900, down 7.5% on the week, stuck in a $60,000–$70,000 range
• Altcoins are bleeding harder — ETH, XRP, SOL, and DOGE all down 8–11% weekly
• Altcoin sell-side pressure is at five-year highs, with few buyers stepping in
• An “AI scare trade” is pulling risk capital out of both tech stocks and crypto
• US stock futures ticked higher Tuesday after the Dow, S&P 500, and Nasdaq all fell over 1%

Bitcoin fell to around $62,900 on Tuesday, down 2.1% on the day and 7.5% on the week. The world’s largest cryptocurrency has been stuck in a $60,000-to-$70,000 trading range since a flush on February 5.

Altcoins are falling harder than bitcoin. Ethereum dropped to $1,829, down 8% on the week. XRP fell 10.8%, Solana shed 11.3%, and Dogecoin dropped nearly 10%.

On-chain analytics firm CryptoQuant flagged that sell-side pressure among altcoins has hit five-year highs. That means holders are actively selling into a market where buyers are scarce.

This type of selling grinds prices lower slowly. It doesn’t produce the sharp drops that typically attract dip buyers, making it harder for traders to time an entry.

FxPro’s chief market analyst Alex Kuptsikevich described bitcoin’s recent move as consolidation, not a reversal. He pointed to a bearish pennant forming on the daily chart.

He said a drop below mid-$65,000 would confirm more downside. A break above $70,000 would cancel the bearish setup.

Bitcoin is currently 48% below its all-time high and 5.5% below its 2021 peak of $69,000. The longer it stays in this range, the more the chart favors sellers.

What the AI Scare Trade Means for Crypto

A report from Citrini Research this week warned of an emerging “AI scare trade.” The note raised concerns that AI could disrupt delivery, payments, and software companies.

That report triggered selling in tech-adjacent stocks. When risk appetite drops in equities, crypto often follows, as both draw from the same pool of investor capital.

On Monday, the Dow Jones Industrial Average fell sharply, pressured in part by a 13% drop in IBM shares. The S&P 500 and Nasdaq both fell over 1%, pushing the S&P 500 back into negative territory for the year.

Stock Futures Recover Slightly

US stock futures edged higher early Tuesday. Dow futures rose 0.1%, S&P 500 futures climbed 0.2%, and Nasdaq 100 futures added 0.3%.

The recovery attempt came after investors reassessed risks tied to AI disruption and President Trump’s plan to raise global tariffs to 15%.

AI startup Anthropic is hosting a product event on Tuesday. Past Anthropic releases have triggered sell-offs in cybersecurity and software stocks, and analysts say Tuesday holds similar risk.

Traders are also watching consumer confidence data due Tuesday, and earnings from Home Depot. Wednesday brings results from Nvidia, Salesforce, and Snowflake.

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