Bitcoin Holds Near $63K as Chip Stock Selloff Rattles Markets

Bitcoin pulled back from a two-week high of $64,660 to circle $63,000 on Tuesday as US stocks fell, led by a sharp decline in chip companies.

The S&P 500 dropped 0.6% and the Nasdaq 100 fell 2.1%, with Micron Technologies sliding more than 9%.

SpaceX Joins Nasdaq 100 Amid Market Turbulence

Tuesday also marked SpaceX’s addition to the Nasdaq 100, described by trading resource The Kobeissi Letter as the fastest inclusion in the index’s history. The stock market weakness came even as US spot Bitcoin ETFs recorded a second straight day of net inflows, helping Bitcoin avoid a deeper drop.

Bitcoin’s Correlation to Stocks Snaps Back

Bitcoin’s correlation to the Nasdaq flipped sharply from negative 0.87 to positive 0.72 within days, shifting Bitcoin’s behavior from acting like a hedge to trading more like a high beta tech stock. Traders pointed to potential further downside, suggesting history shows Bitcoin’s true bottom may not arrive until after a deeper S&P 500 correction, similar to patterns seen in 2015, 2018, and 2022.

Bollinger Sees Bitcoin at a “Critical Point”

Bollinger Bands creator John Bollinger continues watching a potential W-shaped reversal pattern forming on Bitcoin’s daily chart, a setup he previously suggested could end the current downtrend entirely. He reiterated Monday that Bitcoin remains at a critical juncture.