Bitcoin is facing renewed selling pressure, sliding to the $62,500 level and threatening to revisit its recent August lows. This downward move comes at a surprising time, as cooling U.S. inflation data typically acts as a tailwind for risk assets. Instead, Bitcoin appears to be decoupling from the S&P 500 and Nasdaq, both of which remain near record peaks.
The divergence highlights a shift in crypto-specific sentiment, potentially driven by institutional profit-taking or localized liquidity concerns. While traditional investors cheer the potential for Federal Reserve rate cuts following positive CPI and PPI prints, crypto traders are focused on critical technical support levels. The inability to capitalize on a weaker dollar suggests a temporary exhaustion of bullish momentum.
Looking ahead, the upcoming weekly candle close is a critical pivot point for the market. A failure to hold the $62,000 range may validate bearish technical setups, potentially flushing out leveraged longs. Investors should monitor U.S. spot ETF flows and upcoming labor market data to see if the correlation with equities returns or if Bitcoin remains in a standalone correction phase.