Tech Stock Sell-Off Pressures Bitcoin; Fund Manager Predicts $70K Retest Next Month

Crypto Sell-Off Deepens as Broader Market Weakness Weighs on Risk Assets

The crypto market’s ongoing decline has been fueled by internal factors, but a wider shift in macro sentiment is now amplifying the downturn.

The sharp correction in memecoins throughout January was a key trigger for the crypto market’s recent weakness, but this week’s sell-off has accelerated as investors turn risk-averse across the board.

The Nasdaq, which was down over 2% late Thursday, has now dropped nearly 7% in just a few sessions. Leading the losses are semiconductor stocks, with Nvidia (NVDA) falling 5% after reporting its fourth-quarter earnings.

Equities had been trading at elevated valuations for months, making them vulnerable to a pullback. The situation has been further complicated by President Trump’s renewed tariff threats, with new levies on Mexico, Canada, and China set to take effect on Tuesday.

“Risk assets are facing significant downside pressure,” said Quinn Thompson, founder of hedge fund Lekker Capital. “Inflation remains stubbornly high, meaning the Fed is unlikely to cut rates soon. Meanwhile, long-term inflation expectations are creeping higher—an ominous signal for markets.”

Thompson is particularly bearish on crypto’s near-term outlook. “Bitcoin has failed to rally despite multiple bullish catalysts,” he noted. “Investors seem to have forgotten that bear markets exist.” He expects BTC to trade in the $70,000s by the end of March.