Bitcoin slides 4% as tech rout and hawkish Fed outlook weigh on markets

Bitcoin fell more than 4% on Tuesday, trading above $62,000 per token, as the cryptocurrency declined in tandem with the broader equity market and technology stocks. The sell-off underscores the asset’s continued correlation with traditional risk assets, with investors reducing exposure across the board amid shifting monetary policy expectations.

Deutsche Bank strategist Marion Laboure attributed the downturn to a combination of factors, including a hawkish shift in the Federal Reserve outlook, record institutional outflows from exchange-traded funds, and thinning market liquidity. In a note released on Tuesday, Laboure highlighted that these elements have converged to pressure the token’s price action.

David Morrison, senior market analyst at Trade Nation, observed that the broader market sentiment is driving the decline. He noted that investors are keen to cut risk exposure generally, leaving Bitcoin vulnerable to further weakness if equity holdings continue to be reduced. The token’s trajectory this week has largely mirrored major averages, particularly within the technology sector.

The cryptocurrency has underperformed broader markets since the lows recorded on 30 March. Bitcoin is down 28% year-to-date and has fallen approximately 50% from its all-time high reached last October. In early June, the token briefly touched $60,000, marking its lowest level since late 2024.

Despite the pessimistic outlook, some analysts suggest the current selling pressure may indicate a potential turning point. Compass Point analyst Ed Engel pointed to an increase in selling from long-term Bitcoin holders—those holding for six months or more—as a typical sign of late-cycle capitulation. However, strategists have warned that a cyclical bear market for cryptocurrencies may not yet be over, and the duration of this market weakness remains uncertain.