Bitcoin's Two-Week Low Tango: $62K and the Tech Trade That Won't Stop Spilling the Tea 🫖

Bitcoin ($BTC) slipped toward $62,000 on Tuesday, testing a two-week low as a rotation out of this year's best-performing technology and chip shares dragged risk assets across global markets. The largest cryptocurrency traded around $62,300, down 2.5% over 24 hours and more than 3% on the week, per CoinDesk data, after touching roughly $65,076 on Monday. Ether ($ETH) fell more than 4% to $1,650, XRP dropped 1.6% to $1.12, solana lost 3.4% to $71, and dogecoin slid 6.6% over seven days. Tron was among the few gainers, up 1.3% on the day. Hyperliquid's HYPE lost 4.8% on the week, and privacy coins DASH and XMR bucked the selloff, each losing less than 1%.

The selling followed Monday's slide in megacap technology stocks, with Nasdaq 100 futures cratering 2.5% since midnight UTC and S&P 500 futures down 0.8%. A gauge of Asian stocks fell more than 2% after a record close, and South Korea's Kospi plunged more than 6% on fears that the rally in chipmakers had run too far. Brent crude traded below $78 a barrel and gold retreated, while the Dollar Index (DXY) rose to 101.15, its highest level in more than a year and the strongest reading since May 2025. Roughly $717 million in liquidations across the crypto market amplified the losses.

Market participants said the move reflected a shift in what is steering digital assets. "We're seeing a bit of a sell-off in AI," Carlos Guzman, vice president of research at crypto trading firm GSR, told Decrypt. "Crypto is reacting to that risk-off sentiment." Investors are digesting a firming consensus around rate hikes following Kevin Warsh's first remarks as Federal Reserve chair, in which he signaled the central bank would shift away from forward guidance and focus on taming inflation. Traders now expect the Fed to raise its benchmark rate to a target range of 3.75% to 4% in July, and economists at Bank of America began projecting three hikes this year, lifting rates to a target range of 4.25% to 4.5% by year-end. "If people think that we're going into a hawkish environment, that can certainly hurt near-term prices for crypto and other risk assets," Gerry O'Shea, head of global market insights at Hashdex, told Decrypt. "It's a challenging environment that people are trying to make sense of in terms of what the new Fed chair is going to be like."

Chart watchers are watching key support levels. Bitcoin is sitting near the floor of its recent range, and a break below the $59,000 to $60,000 lows set earlier this month would mark a deeper phase of the sell-off, with some traders pointing to $45,000 as the next downside target. Weak U.S. institutional demand is reflected in a negative Coinbase premium and pressure around Strategy's STRC preferred stock, while open interest in BTC futures has slipped to 720K BTC from 742K BTC last week, down from a peak of 800K BTC earlier this month. Still, positioning on Hyperliquid has become "progressively more bullish," Glassnode said on Tuesday, citing an uptick in optimistic bitcoin bets, and the average crypto RSI sits at 39.05, in oversold territory. The next major tests include memory chipmaker Micron's earnings on Wednesday, the June U.S. jobs report on July 2, and the consumer price index on July 14.