Macroeconomic jitters stemming from an emerging AI disruption trade are compounding cryptocurrency weakness, with major companies posting weekly losses of 8-11% across the board.
Bitcoin fell to around $62,900 on Tuesday, down 2.1% on the day and 7.5% on the week, extending a downward move that has so far refused to produce a clean breakout or strong rebound.
Price action has the market pinned within the $60,000 to $70,000 band that formed after the Feb. 5 surge, a range that is starting to feel less like a base and more like a holding pattern awaiting a catalyst.
Altcoins are doing worse. Ethereum traded near $1,829, down 8% on the week. XRP fell 10.8%, Solana’s SOL lost 11.3%, and dogecoin fell almost 10%. The poor performance among major companies reflects a market where risk appetite is shrinking toward bitcoin and even that supply is declining.
CryptoQuant noted that selling pressure among altcoins is at five-year highs, suggesting holders are actively distributing in a market where buyers remain scarce outside of the largest cap.
That type of structural selling tends to push prices lower without the dramatic liquidation candles that attract buyers on dips, making it a slower bleed that’s harder for momentum traders to position themselves on.
FxPro Chief Market Analyst Alex Kuptsikevich said in an email that Bitcoin’s recent rally attempt is shaping up to be a consolidation rather than a reversal. He noted that a bearish pennant is forming on the daily chart, noting that a move below the mid-$65,000 area would confirm the downward continuation, while a break above $70,000 would invalidate the pattern.
More broadly, he described the $60,000 to $70,000 range as historically significant, a zone that acted as a ceiling for the entire 2021 cycle and now appears to be serving as a battleground between long-term accumulators and new loss-cutting holders.
AI fears return
Adding to the pressure is a macro dynamic that has nothing directly to do with cryptocurrencies, but that is depleting the same venture capital fund.
A report from Citrini Research this week flagged an emerging “AI fear trade,” warning of widespread economic disruption due to artificial intelligence in the delivery, payments and software sectors. The note triggered selling in technology-adjacent stocks as investors reassessed which companies benefit from AI adoption and which face the risk of displacement.
That kind of broad risk recalibration tends to hit cryptocurrencies late. Digital assets don’t always sell at the same pace as stocks, but they are sensitive to the same changes in liquidity and positioning that drive risk aversion movements, and right now, the mood in both markets is pointing in the same direction.
Bitcoin is now 48% below its October all-time high and 5.5% below its 2021 high of $69,000. The longer it trades in this range without regaining higher ground, the more the technical picture tilts towards the bears.
