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▲ Cryptocurrency, bear market, Bitcoin (BTC), Ethereum (ETH), XRP, Dogecoin (DOGE)/AI generated image
As a global sell-off in semiconductor stocks cast doubt on the sustainability of the AI rally, Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) simultaneously declined, putting key support levels in the cryptocurrency market back to the test.
According to crypto media outlet Benzinga on June 23 (local time), major cryptocurrencies fell alongside the stock market on Tuesday. The sharp decline in semiconductor-related stocks fueled concerns about the AI rally overheating, increasing selling pressure across risk assets.
Bitcoin dropped below $62,000 amid strong selling pressure. Ethereum's buying power also failed to hold the $1,700 support level. XRP and Dogecoin also recorded simultaneous weakness. As of the time of writing, Bitcoin was down 2.01% to $62,818.32, and Ethereum was down 3.58% to $1,668.9. XRP fell 1.98% to $1.1, and Dogecoin dropped 4.24% to $0.079.
According to Coinglass data, over $560 million worth of positions were liquidated in the cryptocurrency market over the past 24 hours. Of this, bullish long position liquidations amounted to $490 million. If Bitcoin falls to $60,000, approximately $350 million worth of Bitcoin long positions would be at risk of additional liquidation.
Bitcoin open interest decreased by 1.39% over the past 24 hours. However, whales and retail derivatives traders increased their Bitcoin long exposure during the decline, engaging in dip buying. The total cryptocurrency market capitalization decreased by 1.63% from the previous day, reaching $2.15 trillion.
The stock market also could not escape the impact of the sharp decline in semiconductor stocks. The Dow Jones Industrial Average closed down 45.87 points, or 0.09%, at 51,666.84. The S&P 500 Index (SPX) fell 1.44% to 7,365.46, and the Nasdaq Composite closed down 2.21% at 25,587.04. Micron Technology (MU) plummeted over 13% amid concerns about the AI rally overheating.
Crypto analyst Ali Martinez stated that Bitcoin must maintain the $60,587 support level to preserve its current trend. Citing on-chain data, he identified the $60,000 to $63,000 range as a high-volume trading zone. Over 1 million BTC changed hands in this range. Crypto commentator Michaël van de Poppe opined that Ethereum needs to break above $1,800 to regain upward momentum. He said, “If the market re-enters that range, it could move quickly above $2,500,” adding, “Otherwise, a retest of $1,385 or $1,505 is highly likely.”
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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