Bitcoin Retreats Below $58,000 Amid AI and Semiconductor Sector Corrections... 'Bottom Confirmation Still Pending'

Bitcoin retreated below $58,000 amid declines in major tech stocks, particularly AI and semiconductor companies, with the price approaching its 200-day moving average. While some market participants expect buying at the dip, Wintermute analysts note the decline is more closely tied to sector-specific corrections rather than broad risk-off sentiment. Ethereum fell further, dropping 7.9% to $1,580, while U.S. tech stocks and semiconductor ETFs experienced steep declines. The NASDAQ fell 4.5% in a five-day losing streak, and the KOSPI triggered a circuit breaker. Conversely, the Russell 2000 rose 1.4%, and long-term Treasury prices climbed. Wintermute interprets the trend as shifting capital from large tech stocks to other asset classes rather than a broad risk-off shift. Rising U.S. inflation data and potential Fed rate hikes added pressure, while Brent crude oil prices eased near pre-middle-east tensions levels. The fear/greed index remains in extreme fear territory, and Bitcoin's supply in a loss position has surged to around 50% of total supply.