Bitcoin flirts with $60,000 at a dangerous time for risk appetite

Bitcoin is trading at its lowest since mid-May after a fall in Europe that was only curbed by bids in the $60,600 zone.

First of all, bitcoin is very technical and the inability to break above $72,000 and form a high is concerning. If we break above $60,000, or even $57,000, that would leave an ugly trend targeting below $50,000.

Bitcoin is often a precursor to risk sentiment, although it is more of an intraday thing than a trend that leads general risk sentiment by several days. That said, this is certainly correlated with risky assets. The recent low occurred in late October 2023, precisely when stocks hit their lowest level.

The Bitcoin chart remains of the Russell 2000 and its inability to exceed.

The S&P 500 has gained, but only a handful of AI stocks are doing so.