Bitcoin Bitcoin prices fell back to $69,000 on Tuesday morning as a broad correction in the stock market spread to the cryptocurrency market.
After trading near $71,000 earlier in the session, Bitcoin fell to around $69,600 in early U.S. trade, tracking a broader reversal in risk assets. Ethereum (ETH), Solana (SOL) and XRP (XRP) are also down 2%-3% in the past 24 hours.
Bitcoin appears to have continued to follow familiar trends over the past three months. Monday’s gains are typically just over 1%, followed by Tuesday’s gains of just under 1%, according to Velo.
The move also comes as software stocks are tumbling, with the iShares Expanded Tech-Software Sector ETF (IGV) down about 4%. Cryptocurrency prices have closely correlated with movements in the sector in recent months, with both trending lower since October. This relationship is once again on full display as digital assets weaken alongside specific tech sectors.
The S&P 500 and Nasdaq fell 0.5% and 0.8% respectively, giving up most of Monday’s gains on news of talks between the United States and Iran. Global yields continue to climb, the U.S. dollar index remains firmly above 99, and oil prices have risen 2% in the past 24 hours, reinforcing the broader risk-off tone.
Cryptocurrency-related stocks also came under pressure. USDC stablecoin issuer Circle (CRCL) led the decline, with its stock price reversing sharply, plunging 16% after a recent share price rise of more than 100% in a month. Cryptocurrency exchange Coinbase (COIN) fell 8%. The move comes as CoinDesk reported late Monday that the latest version of the Clarification Act would not allow for rewards on balances, limiting stablecoin yields. “This makes it harder for USDC to transition from a payment instrument to a true store of value, undermining a key part of the bull market,” Shay Boloor, chief market strategist at Futurum Equities, said in a post.
Circle’s main competitor, USDT issuer Tether, also announced that it hired the “Big Four” accounting firms to conduct a comprehensive audit, which is seen as an important step in improving the trust of USDT reserve assets.
Shift in interest rate expectations
In one of the most dramatic U-turns in recent years, market participants went from debating how many rate cuts the central bank will cut in 2026 to pricing in imminent hikes in just a few weeks.
According to CME FedWatch data, there is currently zero chance of an interest rate cut at the Federal Reserve’s April or June policy meeting, and the possibility of a rate hike is about 15%. The June Fed meeting is likely to be chaired by Kevin Warsh, whom President Trump nominated to succeed Jerome Powell as Fed chairman, reportedly with the aim of lowering borrowing costs.
