Trading firm Wintermute’s options desk expects Bitcoin to remain locked in a narrow $61,242–$63,563 range on Tuesday, pointing to rising correlations across crypto assets and the absence of any fresh ETF-driven inflows.

Crypto markets continued to slide in midday U.S. trading, with Bitcoin struggling to hold above the $60,000 level after falling more than 3% over the past 24 hours. Ether, Solana, and XRP also moved lower, reflecting broad-based weakness across major tokens.

The decline persisted even as equities recovered from an early dip, led by renewed strength in AI-related stocks. The Nasdaq rose 0.8%, underscoring a widening gap between risk-on sentiment in tech and ongoing pressure in crypto.

Crypto-linked equities also showed mounting stress. Strategy (MSTR) and its high-yield STRC preferred stock extended losses, signaling strain across digital asset treasury structures. MSTR fell another 7.3% to a roughly 2.5-year low near $96, down more than 75% year over year, while STRC dropped 6.35% to a record low below $82.

Sentiment around STRC has weakened further, with market participants noting that its decline is increasingly at odds with its original positioning as a low-volatility, income-style product.

In parallel, political developments briefly intersected with markets after a planned signing of a U.S. housing bill was canceled. The legislation reportedly included language restricting the Federal Reserve from issuing a central bank digital currency through 2030.

In crypto credit markets, additional pressure built as preferred securities tied to digital asset exposure continued to slide. STRC and Strive’s SATA both traded below par value while Bitcoin hovered under $61,000.

Equity markets, meanwhile, staged a modest rebound. The “Magnificent Seven” stocks advanced, helping lift the S&P 500 and Nasdaq 100 by nearly 1%, even as crypto sentiment remained fragile ahead of key earnings from Micron.

On the institutional side, Morgan Stanley added to its digital asset strategy team by hiring former Anchorage Digital executive Joseph Medioli, signaling continued Wall Street expansion into blockchain infrastructure.

Macro data added another layer of pressure. Weak U.S. housing figures pushed Treasury yields lower, with the 10-year yield slipping to 4.41%. Gold dropped below $4,000 per ounce and oil eased toward $70, reinforcing a broader risk recalibration across markets.

Bitcoin briefly dipped to around $61,100 before stabilizing near $61,000, remaining largely unchanged on the day as traders navigated thin liquidity and uneven macro signals.