Live markets: Bitcoin trying to hold $63,000 as AI favorites plunge on Tuesday

Bitcoin (BTC) is currently testing key support around $63,000, a level it has been attempting to hold after a recent downturn. This price action comes against a backdrop of persistent bearish sentiment in the spot Bitcoin ETF market, which has now recorded its eighth straight week of net outflows.

Over the shortened holiday week, these ETFs collectively shed $526.6 million, indicating a significant withdrawal of institutional capital. This continuous selling pressure from regulated investment vehicles is a notable divergence from the narrative of increasing institutional adoption that propelled Bitcoin to new highs earlier this year.

While some analysts point to potential rotation into other assets, like AI-related stocks (which also saw a plunge on Tuesday, as per the headline), or a general risk-off sentiment, the sustained outflows from ETFs are a clear bearish signal for Bitcoin's immediate price trajectory. The market is now watching closely to see if Bitcoin can establish a durable base above $63,000, or if the ETF outflows will drive further capitulation.

The tension lies between the underlying resilience of Bitcoin's decentralized network and the observable, regulated flow of funds from institutional investors. A bounce could signal a bottoming out of ETF selling, while a breakdown below current levels would likely accelerate the downtrend as more investors exit.