Bitcoin Under Pressure as Tech Stocks Sink; Hedge Fund Eyes $70K Retest
Crypto markets remain under pressure as broader economic concerns weigh on investor sentiment.
While January’s collapse in speculative memecoins was a key trigger for recent declines, this week’s sell-off has intensified due to a growing risk-off mood in traditional markets.
The Nasdaq is down nearly 7% over the past several sessions, including a 2% drop on Thursday, with chip stocks leading the decline. Nvidia (NVDA) fell 5% after its earnings report failed to justify its lofty valuation, accelerating the pullback in tech-heavy indices.
Adding to market jitters, President Trump reaffirmed plans to impose fresh tariffs on Mexico, Canada, and China starting next week, further fueling uncertainty across financial markets.
“Risk appetite is deteriorating fast,” said Quinn Thompson, founder of hedge fund Lekker Capital. “With inflation running too hot for the Fed to consider rate cuts and economic data suggesting the ‘Trump bump’ was short-lived, markets are at a pivotal moment.”
For Bitcoin, Thompson sees little room for near-term upside. “The market has shrugged off every bullish catalyst, and investors are beginning to remember what a bear market looks like.” He projects a move toward $70,000 by the end of March.
