Bitcoin slid on Tuesday as weakness in U.S. tech stocks appeared to spill over into crypto markets.
The crypto asset fell about 1% over the past 24 hours, trading at $106,175 at press time as traders took profits after ending June above the $107,000 for its highest-ever monthly close.
Sentiment equally soured in equities with shares of Tesla (TSLA) and Nvidia (NVDA) both taking heavy losses, dragging the Nasdaq lower by about 0.6% — a pattern that often weighs on digital assets. Tesla was lower by 5.4% in afternoon trade after the Donald Trump/Elon Musk spat re-erupted alongside the momentum for passage of the GOP’s spending bill.
Major altcoins including Solana SOL, Cardano ADA and Avalanche AVAX posted steep declines, adding to a broader downturn across the crypto space. SOL led the way with a 6% decline following yesterday’s spike higher on news of imminent launch of an ETF.
Powell repeats vow to stay patient
Speaking in Europe at an ECB event, Federal Reserve Chairman Jerome Powell repeated recent comments about the U.S. economy being in a good spot, thus allowing for patience as the central bank mulls the idea of rate cuts.
Powell’s comments Tuesday were of particular import given what’s now a clear split between him and at least two other Fed members, both of whom would like to see a July rate cut on the table. Powell did allow that a rate cut this month isn’t off the table, but gave little indication he’s considering easing policy in July.
Thanks to the July 4 holiday, the government’s employment report for June will be released on Thursday this week. Economists are expecting jobs to have grown by 110,000 in June versus 139,000 the previous month.
A sizable delta below that 110,000 level could quickly change sentiment about the Fed’s July decision.