Warm Welcome, Tagus Community, June 8, 2026
Bitcoin Resilience Amid Risk Rotation: While the stronger-than-expected US labour market report initially weighed on both equities and digital assets by reinforcing expectations that the Fed will start hiking rates at the end of 2026, Bitcoin has since demonstrated greater resilience than technology stocks during the sharp Nasdaq-led sell-off on June 5 and the subsequent KOSPI correction on June 8. Additional headwinds from escalating geopolitical tensions following military strikes between Israel and Iran, which have pushed oil prices higher and further undermined broader risk sentiment, have also weighed on traditional financial markets. However, Bitcoin’s relative resilience partly reflects the fact that much of the capitulation in crypto markets had already occurred in the preceding week, with the Crypto Fear & Greed Index falling into “extreme fear” territory and reaching single-digit levels (see Digital Asset Dashboard below). Bitcoin has therefore already undergone a significant capitulation amid US Bitcoin ETF outflows (Tagus <> Bytes: June 1, 2026), capital rotation towards mega-cap technology stocks (Tagus <> Bytes: June 3, 2026), deleveraging and broader risk reduction. More broadly, Bitcoin remains around 50% below its all-time high, in contrast to many major equity indices and technology stocks that entered the recent correction trading close to record highs. As a result, Bitcoin has faced less valuation-driven pressure than traditional risk assets. This suggests that, while Bitcoin remains sensitive to shifts in global liquidity and risk appetite, its reduced correlation recently with technology stocks and prior phase of capitulation point to a comparatively more stabilised behaviour versus traditional risk assets, which have yet to experience a similar degree of adjustment.
