After Historic Monthly Close, Bitcoin Dips to $106,000

Bitcoin Drops to $106K as Tech Market Rout Hits Crypto, Powell Urges Caution on Rates

Bitcoin slid lower on Tuesday, mirroring losses in U.S. technology stocks as investor caution spilled over into the crypto market, prompting traders to lock in profits and pushing altcoins into the red.

After securing a record monthly close above $107,000 in June, Bitcoin retreated around 1% over the past day, hovering near $106,175 at press time. The decline reflects broader risk-off sentiment as investors react to volatility in the tech sector.

Leading tech stocks, including Tesla (TSLA) and Nvidia (NVDA), tumbled, dragging the Nasdaq lower by about 0.6%. Tesla fell 5.4% amid heightened tensions between Elon Musk and former President Donald Trump, coupled with debates around the Republican budget bill.

Crypto markets followed suit, with Solana (SOL), Cardano (ADA), and Avalanche (AVAX) all recording significant losses. SOL saw the sharpest drop, shedding 6%, reversing gains fueled by enthusiasm over a potential spot ETF.

Powell Takes Measured Tone on Monetary Policy

Meanwhile, Federal Reserve Chair Jerome Powell addressed the European Central Bank, emphasizing that the U.S. economy remains solid enough for the Fed to remain patient about cutting interest rates.

Powell’s measured stance comes amid diverging views within the central bank, with at least two policymakers indicating support for discussing a possible rate cut as early as July. While Powell didn’t rule out the option, he offered little to suggest an imminent move.

Investors are now watching Thursday’s jobs report closely—a day earlier than usual because of the Independence Day holiday. Economists anticipate the addition of 110,000 jobs in June, down from 139,000 in May.

A weaker-than-expected result could shift market expectations, increasing pressure on the Fed to act sooner on rates.