Bitcoin Dips Below $106K as Tech Stock Selloff Weighs on Crypto

Bitcoin slipped nearly 1% over the past 24 hours, trading at $106,175 on Tuesday, as weakness in U.S. tech stocks appeared to drag the broader crypto market lower. The decline comes just after BTC recorded its highest-ever monthly close above $107,000 in June, prompting some profit-taking by traders.

The tech-heavy Nasdaq dropped 0.6%, led by steep losses in Tesla and Nvidia shares. Tesla fell over 5% following renewed tensions between Elon Musk and Donald Trump, coinciding with renewed momentum for the Republican-led spending bill. This negative equity sentiment spilled into digital assets, reinforcing the correlation between high-growth stocks and crypto markets.

Major altcoins also posted losses. Solana (SOL) dropped 6% despite Monday’s ETF optimism, while Cardano (ADA) and Avalanche (AVAX) fell to $0.5436 and $17.12 respectively, extending the broader crypto downturn.

Adding to market uncertainty, Federal Reserve Chair Jerome Powell struck a cautious tone during a speech at an ECB forum in Europe. While reiterating that the U.S. economy remains strong, Powell emphasized a patient approach to potential interest rate cuts, offering little support for a July easing. However, he didn’t rule out a cut entirely, highlighting a growing divide among Fed officials—some of whom are pushing for immediate action.

Investors now turn to Thursday’s U.S. employment report, released earlier due to the July 4 holiday. Economists expect a gain of 110,000 jobs in June, down from 139,000 in May. A significantly lower figure could influence the Fed’s rate decision later this month, possibly shifting market sentiment.

This convergence of tech sector volatility, cautious Fed policy, and critical economic data has heightened uncertainty across both equity and crypto markets.