Bitcoin fell to a two-week low of $62,000 on Tuesday, dropping 4% in a day as a sell-off in tech stocks signaled shifting risk appetite. The decline mirrored losses in the Nasdaq, which was set to slide 1.6% due to weakness in chipmakers and AI-related stocks. Ethereum, XRP, and Solana fell over 5%. Investors are digesting a firming consensus on rate hikes, with expectations that the Federal Reserve may raise rates to 3.75%-4% by July. Hashdex’s Gerry O'Shea highlighted the Clarity Act and de-escalation in the Middle East as potential catalysts for crypto. Despite the downturn, Hyperliquid data showed increasingly bullish Bitcoin bets. Analysts note that higher rates make government debt more attractive, weighing on risk assets like crypto. The Clarity Act faces a tight timeline before midterm elections.

Key facts

• Bitcoin fell 4% to $62,000, a two-week low, in sympathy with tech stock sell-off.
• Nasdaq slid 1.6% as AI and chipmaker stocks dropped.
• Ethereum, XRP, and Solana each lost over 5% in the same period.
• Fed rate hike expectations rise, with July target range of 3.75%-4%.
• Hashdex notes Clarity Act and Middle East de-escalation as crypto catalysts.

KeyAudit data perspective