Bitcoin moved lower on Tuesday as weakness in equities and a sharp shift in interest rate expectations pressured risk assets across the board.

After briefly trading near $71,000 earlier in the session, bitcoin (BTC) slipped back toward $69,000, hovering around $69,600 in early U.S. trading. The broader crypto market followed, with ether (ETH), solana (SOL) and XRP each falling about 2%–3% over the past 24 hours.

The decline continues a recent trend in which bitcoin tends to post modest gains on Mondays before easing slightly on Tuesdays, according to Velo data.

Equity markets also turned lower, led by losses in the tech sector. The iShares Expanded Tech-Software Sector ETF (IGV) dropped roughly 4%, extending a downturn that has closely mirrored crypto’s trajectory in recent months. Since October, digital assets and software stocks have largely moved in tandem, and Tuesday’s sell-off reinforced that correlation.

Major indexes weakened as well, with the S&P 500 and Nasdaq down 0.5% and 0.8%, respectively, giving back much of Monday’s rally tied to developments around U.S.-Iran tensions. Meanwhile, macro conditions pointed to a more cautious backdrop, with global bond yields rising, the U.S. dollar index holding firm above 99, and oil prices climbing another 2%.

Crypto-related equities saw sharper declines. Circle (CRCL), the issuer of the USDC stablecoin, fell 16% after a strong run that had seen shares more than double over the past month. Coinbase (COIN) dropped 8%. The sell-off followed reports that the latest version of the Clarity Act may restrict rewards on stablecoin balances, potentially limiting yield opportunities. Analysts say this could weaken a key part of the bullish case for USDC by making it harder to evolve beyond a payments-focused asset.

Meanwhile, Tether, the issuer of USDT and a key competitor to Circle, said it has engaged a Big Four accounting firm to conduct a full audit of its reserves, a move aimed at improving transparency and strengthening investor confidence.

Underlying the broader weakness is a rapid reversal in interest rate expectations. In a matter of weeks, markets have shifted from pricing in multiple rate cuts in 2026 to considering the possibility of rate hikes.

CME FedWatch data now shows no expectation of rate cuts at either the Federal Reserve’s April or June meetings, with roughly a 15% probability of a rate increase instead. The June meeting is expected to be chaired by Kevin Warsh, President Donald Trump’s nominee to succeed Jerome Powell, signaling a potential shift in monetary policy direction.