Bitcoin Slips to $106K as Tech Sector Weakness and Caution from Powell Weigh on Markets
Bitcoin pulled back on Tuesday as selling pressure in U.S. tech stocks extended into the cryptocurrency market, sparking profit-taking and dragging altcoins lower.
After capping off June with a record monthly close above $107,000, Bitcoin dipped about 1% over the past 24 hours, trading at $106,175 at the time of writing. The drop came as investors took profits amid a broader risk-off mood, especially following sharp losses in high-profile tech stocks.
Tesla (TSLA) and Nvidia (NVDA) both posted steep declines, contributing to a 0.6% drop in the Nasdaq Composite. Tesla’s 5.4% slide was fueled by escalating tensions between Elon Musk and former President Donald Trump, as well as ongoing debates over the GOP’s budget legislation.
The sell-off spilled over into crypto, with Solana (SOL), Cardano (ADA), and Avalanche (AVAX) all suffering losses. SOL led the pack with a 6% decline, reversing some of Monday’s ETF-driven gains.
Fed Chair Signals Patience Amid Policy Split
In a speech at a European Central Bank event, Fed Chair Jerome Powell said the U.S. economy remains robust enough for the central bank to delay cutting interest rates. His cautious tone contrasted with some Fed officials who have recently expressed openness to a possible rate cut as soon as July.
Although Powell didn’t completely dismiss the idea of a near-term reduction, his comments gave no strong indication that such a move is imminent.
Investors are now focused on Thursday’s U.S. jobs report—which comes a day earlier due to the July 4 holiday. Economists expect the economy added 110,000 jobs in June, down from 139,000 in May.
A significantly weaker print could shift expectations and put pressure on the Fed to act sooner on rate policy.
