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Bitcoin Retreats as Tech Stock Slump Ripples Through Crypto Markets
Bitcoin fell on Tuesday as turbulence in U.S. technology stocks spilled over into the cryptocurrency space, prompting widespread profit-taking and sending altcoins lower alongside the broader market.
The leading digital asset dropped around 1% over the past 24 hours, changing hands at $106,175 at press time. The decline followed Bitcoin’s record monthly close above $107,000 at the end of June, which had encouraged some traders to lock in gains.
The downturn coincided with weakness in equity markets, where high-profile tech names struggled. Tesla (TSLA) and Nvidia (NVDA) both suffered significant losses, helping to pull the Nasdaq down by about 0.6%. Tesla shares slid 5.4% during afternoon trading after renewed tensions between Donald Trump and Elon Musk flared, alongside political maneuvering over the GOP’s spending bill.
Altcoins weren’t spared in the sell-off. Solana (SOL), Cardano (ADA), and Avalanche (AVAX) all saw sharp declines. SOL led the slide with a 6% drop after having surged the day prior on optimism around the impending launch of a spot exchange-traded fund (ETF).
Powell Signals Patience on Rates
Meanwhile, Federal Reserve Chair Jerome Powell spoke at an event hosted by the European Central Bank, reiterating that the U.S. economy remains healthy enough for the central bank to remain patient before considering interest-rate cuts.
His comments carried added weight given the current divide within the Fed, as at least two other policymakers have signaled support for discussing a rate reduction as early as July. While Powell acknowledged that a rate cut this month isn’t entirely off the table, he offered little to suggest he’s leaning in that direction.
Due to the U.S. Independence Day holiday, the Labor Department’s employment report for June will be released on Thursday rather than Friday this week. Economists forecast an increase of 110,000 jobs for June, down from 139,000 the previous month.
A significant miss below that figure could quickly shift expectations regarding the Fed’s decision-making for July.
