What to know:
- Bitcoin slipped back toward $69,000 on Tuesday as a broader pullback in risk assets weighed on crypto markets.
- Stablecoin issuer Circle and crypto exchange Coinbase led declines among digital asset-related stocks.
- Increasing expectations of Federal Reserve rate hikes fueled risk-off sentiment, while bitcoin continued its recent pattern of modest Monday gains followed by small Tuesday declines.
On Tuesday morning, Bitcoin’s price dipped back down towards $69,000. This happened because stock prices generally fell, and that affected the cryptocurrency market as well.
Bitcoin (BTC) dipped to around $69,600 after briefly reaching nearly $71,000 earlier in the day, mirroring a general decline in riskier investments. Other cryptocurrencies like Ether (ETH), Solana (SOL), and XRP also saw price drops of 2-3% over the last 24 hours.
Over the last three months, Bitcoin has shown a consistent pattern: it usually gains a little over 1% in value on Mondays, then dips slightly, by just under 1%, on Tuesdays, as shown by data from Velo.
This decline happened as software stock prices fell, with the tech-focused ETF IGV dropping around 4%. Cryptocurrency prices have often followed the same trend as the tech sector recently, and both have been decreasing since October. This connection was clear again, as digital currencies also lost value when software stocks did.
Stocks fell on Tuesday, with the S&P 500 down 0.5% and the Nasdaq down 0.8%, erasing most of the gains they made on Monday. This decline followed news regarding U.S.-Iran negotiations. Interest rates around the world are still increasing, the U.S. dollar remains strong, and oil prices have increased by 2% in the last day, all suggesting investors are becoming more cautious.
As a researcher following the crypto market, I’ve observed some significant pressure on crypto-related stocks recently. Circle (CRCL), the company behind the USDC stablecoin, experienced a particularly sharp drop, falling 16% after a month of strong gains that had more than doubled its share price. Coinbase (COIN), a major crypto exchange, also saw a decline of 8%. This downturn seems to be linked to a new version of the Clarity Act, as reported by CoinDesk. Apparently, this new version would prevent stablecoins like USDC from offering rewards on balances, which effectively limits their potential as a long-term store of value. As Shay Boloor from Futurum Equities pointed out on X, this change weakens the argument for a bullish outlook on these types of assets.
Tether, the company behind USDT – a major competitor to Circle – has announced it’s working with one of the world’s largest accounting firms to conduct a full audit. This is a significant move intended to build confidence in the assets backing USDT.
Shift in interest rate expectations
Just weeks ago, people were discussing potential interest rate cuts in 2026. Now, the market is rapidly preparing for interest rates to go up very soon – a dramatic and quick shift in expectations.
Recent data from CME FedWatch indicates that the Federal Reserve is unlikely to lower interest rates in April or June. In fact, there’s now about a 15% chance rates could actually increase. If these predictions hold, the June meeting would be led by Kevin Warsh, President Trump’s nominee to replace Jerome Powell as head of the Federal Reserve, despite the stated goal of reducing borrowing costs.
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2026-03-24 18:46