Key Points:
- Bitcoin dropped 1.7% to trade around $67,600 on Tuesday.
- US tech stock futures slid, dragging crypto prices down.
- Bitcoin ETFs lost $360 million in outflows last week.
- Experts warn the price could slide into the $50,000 range.
Bitcoin stumbled on Tuesday as traders returned from a long holiday weekend. The digital token fell about 1.7% to hover near $67,600. This drop mirrored a gloomy mood on Wall Street, where futures for the Nasdaq 100 and S&P 500 also slid lower before the opening bell. Since Bitcoin often moves in sync with risky tech stocks, the negative start for traditional markets pulled crypto down with it.
Investors are currently juggling several worries. Geopolitical tensions involving Iran are rising, and there is a heated debate about whether the artificial intelligence boom will actually help the wider economy or disrupt it. On top of that, last week’s inflation numbers have forced everyone to rethink when the Federal Reserve might finally cut interest rates.
Money is actively leaving the crypto market. Investment funds tracked in the U.S. recorded their fourth straight week of net losses. Investors pulled $360 million out of Bitcoin exchange-traded funds (ETFs) last week alone. This steady exit of cash acts as a heavy weight on the price, making it hard for the token to rally.
The mood in the market is dark. A popular “Fear and Greed” index for crypto hit a score of 10 out of 100 on Monday. This places sentiment deep in “extreme fear” territory. Paul Howard, a director at market maker Wincent, notes that big economic news drives crypto prices right now. He believes an upcoming Supreme Court ruling on tariffs this Friday could shake things up more than usual Fed updates.
The big question is how low prices could go. While many traders see $60,000 as a solid floor, others remain skeptical. Robin Singh, CEO of Koinly, warned that one bad piece of news could break that support. He fears that if the market wobbles again, Bitcoin could easily slide back down into the $50,000 range.
