Bitcoin Stuck at $61K as Investors Flock to AI IPOs

Bitcoin's price has been stuck at around $61,000 for several days after a brutal week of trading. Analysts are warning that more downside could be in store as investors shift their focus to artificial intelligence IPOs.

The cryptocurrency dropped below its 200-week moving average last week and is showing signs of a bear market. This has led some analysts to predict that it may take several months or even years for the market to recover.

Investors have been fleeing Bitcoin exchange-traded funds as hopes for interest-rate cuts have dwindled, inflation remains high, and the labor market shows resilience. The tech-heavy Nasdaq also sank 1.7% on Tuesday, with chip stocks leading the declines, signaling that the market is bracing for a batch of massive IPOs in the tech sector.

Elon Musk's SpaceX is planning an IPO this week that could value the rocket-launch firm at $1.75 trillion. Anthropic and OpenAI are also set to go public soon.