Crypto Market Reacts to Profit-Taking and Tech Sector Weakness
After reaching its highest-ever monthly close above $107,000, Bitcoin price dropped to $105,800 on Tuesday as profit-taking kicked in. The pullback comes amid a broader decline in risk assets, particularly U.S. tech stocks, which dragged down overall market sentiment.
Bitcoin fell about 1% over the past 24 hours, currently trading near $106,175.
Tech Stock Decline Impacts Crypto Markets
The Nasdaq composite index declined by 0.6% after sharp losses in major tech stocks like Tesla (TSLA) and Nvidia (NVDA). Tesla fell over 5.4% in afternoon trading due to political tensions and spending bill developments.
This drop in tech stocks appears to have spilled over into crypto markets, affecting digital asset performance.
Altcoins See Sharper Losses: Solana, Cardano, Avalanche
While Bitcoin’s decline was modest, altcoins suffered deeper corrections. Among the biggest losers:
- Solana (SOL) dropped nearly 6% to $148.40
- Cardano (ADA) declined to $0.5457
- Avalanche (AVAX) fell to $17.18
Solana’s decline came just after a brief rally sparked by news of a potential ETF launch.
Fed Chair Powell Maintains Cautious Stance on Rate Cuts
Adding to investor uncertainty, Federal Reserve Chairman Jerome Powell reiterated at a European Central Bank event that the U.S. economy remains stable, allowing the Fed to be “patient” regarding interest rate cuts.
Powell didn’t rule out a July rate cut but gave no strong indication it was likely.
This contrasts with other Fed officials who favor more immediate action. Markets are now closely watching the U.S. jobs report, scheduled for Thursday, July 4, due to the holiday week.
Economists expect 110,000 new jobs in June. A weaker-than-expected number could influence the Fed’s July policy decision.
Short-Term Volatility Likely to Persist
The recent pullback in Bitcoin and altcoins reflects ongoing sensitivity to macroeconomic news and broader market trends. As the crypto sector matures, correlation with equities, especially tech stocks, continues to grow.
Bitcoin remains above key support but further volatility is expected ahead of the jobs report and Fed’s July meeting.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.