Bitcoin drops 12% to $66,000 as capital rotates into stablecoins amid crypto risk aversion
By
Omkar Godbole
4d ago· 3 min readenNews
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Golden Brown
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Summary
Bitcoin has dropped approximately 12% over the past week to under $66,000, confirming a full-blown trend of capital flight from cryptocurrencies into dollar-linked stablecoins like Tether (USDT) and USD Coin (USDC). This rotation, initially flagged as an early warning sign of risk aversion, has accelerated as Bitcoin pulled back from May highs above $80,000, dragging the broader crypto market lower. The shift into digital dollars is occurring even as traditional stock markets and the Dollar Index remain calm.
Key quotes
· 3 pulledA week ago, CoinDesk informed readers of the renewed rotation of funds into dollar equivalents such as tether and USD Coin stablecoins as bitcoin pulled back from the early May highs above $80,000.
Those early warning signs have now turned into a full-blown trend.
Bitcoin has dropped about 12% over the past week to under $66,000, pulling the broader crypto market lower with it, CoinDesk data show.
The crypto market is seeing a capital flight into dollar-linked stablecoins even as stocks and the Dollar Index remain calm.
