Crypto Stocks Plunge as Nasdaq Enters Correction, Bitcoin Falls Below $66,000

Bitcoin is known as a decentralized asset, but its recent trading has increasingly resembled that of a highly volatile technology stock. Its 30-day rolling correlation with the U.S. software ETF IGV rose to 0.73, while their volatility correlation reached a record 0.88. As investors sold technology giants including IBM, funds also flowed out of crypto, making the $63,000 support level a key gauge.

After U.S. stocks closed on Monday, bitcoin briefly fell to $63,465 early on Feb. 24, 2026, Taiwan time, before recovering to about $64,314. Ether touched a low of $1,813 and rebounded to $1,830. The Dow, S&P 500 and Nasdaq fell 1.66%, 1.04% and 1.13%, respectively, while IBM plunged 13%. The market remained in “extreme fear.”

Tensions between the United States and Iran escalated in July 2026, prompting fears of a wider conflict, disruptions to energy supplies and renewed inflation. Global investors pulled money from equities and crypto assets as a result. Bitcoin, Ethereum and U.S.-listed crypto-related stocks came under pressure, while traditional safe-haven assets such as gold and silver drew buying interest.

During the latest selloff, global oil prices surged as much as 6% in a single day, while the Dow, S&P 500 and Nasdaq all closed lower. Bitcoin fell below $65,000 in July, and Ethereum broke below support at $1,900. Shares of cryptocurrency trading platforms, miners and other crypto-related companies also broadly declined during U.S. trading hours.

Bitcoin is highly sensitive to interest rates and risk appetite. Conflict in the Middle East and the Strait of Hormuz crisis have driven up oil prices and inflation concerns, while rising U.S. Treasury yields have pushed capital toward safe-haven assets such as the dollar. The latest decline has also affected liquidity across the broader cryptocurrency market.

As of July 19, Bitcoin had fallen about 3% over 24 hours, dropping below $67,000 and touching a two-week low. The U.S. 10-year Treasury yield approached 4.5%, near a one-year high, while about $300 million in long positions were liquidated. Core Scientific separately sold $175 million worth of Bitcoin and plans to redirect the proceeds into AI data centers and high-performance computing operations.

Bitcoin is highly sensitive to interest rates and market liquidity. The U.S. Federal Reserve delivered its most hawkish signal in years through the Federal Open Market Committee, while the U.S.-Iran conflict increased energy and inflation risks. Investors responded by retreating from risk assets including cryptocurrencies, as oil prices climbed to their highest level since 2022.

Market analysis on May 18 showed Bitcoin falling below $76,000 and approaching $75,000, with some traders predicting a possible decline to $65,000. Recent buyers sold $770 million worth of BTC at a loss, reflecting how high oil prices, hawkish monetary policy and geopolitical tensions continue to suppress demand.

U.S. President Donald Trump extended an Iran-related deadline, but markets remained concerned that military conflict could escalate, with risk aversion weighing on crypto assets. Bitcoin, a bellwether for the crypto market, came under pressure first, while major tokens including Ether also weakened. The moves show geopolitical risks are driving near-term capital flows.

As of July 19, 2026, Bitcoin was trading near $68,000 after falling below $68,500, as investors continued to monitor the Iran deadline and developments in the conflict. U.S. spot Bitcoin ETFs nevertheless recorded about $2.5 billion in net inflows over the past month, indicating that institutional investors had not retreated because of the short-term decline and continued to build positions in Bitcoin and Ether.

Bitcoin has long been viewed by some investors as inflation-resistant “digital gold,” but its recent performance has more closely resembled that of a volatile risk asset. Its price has moved closely in line with software-stock benchmarks such as the iShares Expanded Tech-Software Sector ETF (IGV), suggesting that selling pressure in U.S. technology shares and private equity markets is spilling into cryptocurrencies.

During U.S. trading on Monday, July 13, Bitcoin briefly rebounded above $65,000, but the rally failed to hold. It retreated to about $65,400 as the broader stock market and software shares declined. Polymarket showed the probability of Bitcoin falling below $55,000 had risen to 72%, reflecting weakening confidence among holders and increased downside risk.