Bitcoin fell back towards $69,000 on Tuesday morning as a broader decline in equities spilled over into crypto markets.
After trading near $71,000 earlier in the session, BTC fell to around $69,600 in the early US hours, tracking a broader reversal in risk assets. Ether (ETH), Solana (SOL) and XRP (XRP) also fell 2%-3% over the past 24 hours.
Bitcoin seems to continue following a familiar trend over the past three months. It’s typically up just over 1% on Mondays and then falls just under 1% on Tuesdays, according to Velo data.
The move also came as software stocks tumbled, with the iShares Expanded Tech-Software Sector ETF ( IGV ) falling about 4%. Crypto prices have moved closely in line with the sector in recent months, with both being lower since October. This relationship was on full display again, with digital assets weakening alongside the particular technology space.
The S&P 500 and Nasdaq stock indexes were 0.5% and 0.8% lower, giving up much of their Monday gains on news of US-Iran talks. Global yields continue to rise, DXY remains firm above 99 and oil is up 2% over the past 24 hours, reinforcing the broader risk-off tone.
Crypto-related stocks also came under pressure. USDC stablecoin issuer Circle (CRCL) led the decline, plunging 16% in a sharp reversal after its recent rally that took shares more than 100% higher in a month. Crypto exchange Coinbase (COIN) fell 8%. The moves came as CoinDesk reported late Monday that the latest version of the Clarity Act will not allow rewards on balances, limiting dividends on stablecoins. “It weakens an important part of the bull case by making it harder for USDC to evolve from a payment tool into a true value-adding product,” Shay Boloor, chief market strategist at Futurum Equities, said in an X note.
USDT issuer Tether, a key competitor to Circle, also announced it was hiring a “Big Four” auditing firm for a full audit, seen as an important step to improve confidence in USDT’s reserve assets.
Change in interest rate expectations
In one of the more remarkable 180-degree turns in recent years, market participants have gone from debating how many central bank rate cuts there would be in 2026 to pricing in imminent rate hikes in a matter of weeks.
According to CME FedWatch, there is now zero chance of a rate cut at either the Federal Reserve’s April or June policy meetings, and instead about a 15% chance of a rate hike. The June Fed meeting is likely to be chaired by Kevin Warsh, whom President Trump has nominated to replace Jerome Powell as head of the US central bank with the presumed intention of lowering borrowing costs.
