Bitcoin prices fell to their lowest levels in nearly two weeks as a wave of selling in technology stocks in the United States caused investors to reduce holdings in risky assets.
At the time of writing, Bitcoin prices were at $62,865, up 0.05% since it opened early Wednesday in Asian trading.
Bitcoin fell 3.9% to $61,877 before recovering slightly and trading around $62,300.
Other cryptocurrencies also took a hit, with Ether falling 5.6%, Solana down 6.4%, and XRP down 3.3%.
The decline coincided with a decline in technology stocks on Wall Street, particularly the Nasdaq 100 index which fell 3.4%.
Concerns about large spending by companies on artificial intelligence (AI) have returned to haunt the market, causing investors to choose to reduce risk.
In Asia, negative sentiment was more pronounced as South Korea's Kospi index plunged 10% from its record high.
South Korea is one of the world's most active crypto markets, and the country's weak stock market has also weighed on the price of the digital asset.
Throughout June, Bitcoin has mostly traded below $65,000.
Bitcoin spot exchange-traded funds (ETFs) in the United States have seen $2.4 billion in outflows so far this month, indicating some investors are taking a cautious approach.
Crypto-related stocks have also been under pressure.
Strategy, the company with the largest Bitcoin holdings among public companies, fell for the fifth straight session and is down more than 20% in a week.
Coinbase shares fell 2.5%, while Circle Internet Group fell more than 4%.
Market sentiment was also affected after Strategy sold some of its Bitcoin holdings for the first time in years.
In addition, the use of new shares to finance Bitcoin purchases has increased concerns about dilution for existing shareholders.
The combination of falling technology stocks, ETF outflows and concerns about Strategy's actions has led to more cautious crypto market sentiment in the short term.
