On Tuesday morning, the price of Bitcoin retreated to around $69,000, mirroring the broad downturn gripping global markets. Earlier in the week, Bitcoin briefly edged toward the $71,000 mark before succumbing to selling pressure seen during the U.S. market open, slipping back to $69,600 as risk assets across the board faced heavy headwinds.
Major Cryptos Mirror Losses in Equities
In the last 24 hours, not only Bitcoin but also top cryptocurrencies such as Ether, Solana, and XRP registered losses of 2% to 3%. The price trend shows a recurring pattern: for the past three months, Bitcoin has typically posted modest gains on Mondays, only to pull back slightly on Tuesdays. Data from Velo reinforces this observation, highlighting Bitcoin’s repeated cycles of early-week volatility.
Stock Market and Crypto Price Moves Closely Linked
A pronounced selloff in the technology sector has increasingly weighed on crypto assets in recent weeks. The iShares Tech-Software sector index stands out after dropping 4%, tracking closely with the performance of leading digital assets. The parallel decline underscores how tech stocks’ struggles are now mirrored in the cryptocurrency landscape.
Major U.S. indices also stumbled: the S&P 500 slipped by 0.5% while the Nasdaq fell 0.8%. Ongoing diplomatic discussions between the United States and Iran contributed to the uncertain mood, while rising global bond yields and a stronger U.S. Dollar Index (DXY) added to market pressures. Meanwhile, oil prices gained 2%, reinforcing investor caution and risk aversion.
Crypto-Linked Firms Take a Hit
Shares of companies tied to cryptocurrencies also faced steep declines. Circle, the issuer of the USDC stablecoin, saw its stock plunge by up to 16% after a rapid rally over the past month, effectively erasing half of its gains. Coinbase followed suit, posting an 8% drop amid widespread selling across the sector.
This wave of selling was intensified by fresh regulatory scrutiny targeting yield-generating stablecoins. A new draft of the Clarity Act aims to restrict interest payments on balances held in stablecoins, amplifying uncertainty for centralized crypto players like Coinbase and Circle. Shay Boloor, market strategy director at Futurum Equities, explained how these changes hinder Circle’s ambitions for USDC to function as a store of value, not just a payment tool.
Shay Boloor commented that these restrictions complicate USDC’s development as a store of value, undercutting a core part of its growth thesis.
Meanwhile, rival stablecoin issuer Tether sought to shore up confidence by announcing a comprehensive audit process with a leading independent global firm, aiming to enhance transparency around its reserves.
Market sentiment has shifted notably in broader financial circles as well. Just weeks ago, discussions centered on how many times central banks would cut interest rates by 2026. Now, the mood has swung, with traders bracing for the potential of accelerated rate hikes ahead.
Fresh figures from CME FedWatch show that hopes for a Federal Reserve rate cut in either April or June have vanished. In fact, a rate hike at the June meeting is now seen as a real possibility. As for leadership, speculation is mounting that Kevin Warsh could replace Jerome Powell as the next Fed Chair—the proposal reportedly favored by Donald Trump—potentially signaling a new direction in monetary policy if Warsh takes the helm.
