Bitcoin’s price drops to $61K amid Wall Street anticipation of SpaceX IPO; analysts concerned about crypto bear market
June 9, 2026
Bitcoin has remained stagnant at around $61,000 following a tumultuous week of trading, sparking concerns among analysts that the cryptocurrency market may enter a bear phase. Last week, Bitcoin briefly dipped below $60,000, marking its lowest level since October 2024 and a steep drop from its all-time high of over $126,000.
The recent downtrend in Bitcoin’s price has prompted caution among investors, with Jake Kennis, an analyst at Nansen, noting that the market has been in a clear downtrend for several months. Kennis emphasized that bear markets can persist for extended periods, potentially signaling a prolonged period of price volatility for the cryptocurrency.
A confluence of factors, including diminishing hopes for interest rate reductions, persistent inflation, and a resilient labor market, has led investors to flee Bitcoin exchange-traded funds in favor of high-profile artificial intelligence Initial Public Offerings (IPOs). The Nasdaq’s 1.7% decline on Tuesday, led by chip stocks, suggests that the market is anticipating a wave of significant tech IPOs, with Elon Musk’s SpaceX IPO set to value the company at $1.75 trillion.
William Stern, the founder of Cardiff, a financial analysis firm, highlighted the shift of institutional funds from crypto ETFs to tech and AI stocks, where returns are quicker. As a result, Bitcoin has faced selling pressure, compounded by a mass sell-off from Strategy, the largest corporate holder of Bitcoin, and falling below its 200-week moving average, a technical indicator signaling potential market volatility.
The recent market conditions have raised concerns among analysts about a possible bear market for Bitcoin. Bitfinex analysts noted that the current distribution cycle implies that rallies are being used as opportunities to exit the market, rather than being bought up aggressively as in the past. The break below the 200-week moving average has been a significant development, confirming fears that Bitcoin’s price rally may not be sustainable in the long term.
Despite attempts by Strategy to reassure investors through large Bitcoin purchases, the market remains wary, with uncertainties surrounding the cryptocurrency’s future trajectory. As the tech IPO frenzy intensifies, Bitcoin’s value may face increased volatility and downside pressure until conditions stabilize. Analysts remain cautious about the immediate prospects for Bitcoin, suggesting that further price declines may be on the horizon until market sentiment shifts.
