Bitcoin Below $62K: Is the Tech Sell-Off Dragging Crypto Into Its Next Leg Lower?

Bitcoin fell below $62K for the first time in nearly two weeks, reversing a weekend recovery as rising U.S. interest-rate expectations and a global tech-stock sell-off weigh on risk appetite.

The world's largest cryptocurrency is down 3.5% over the past 24 hours at around $62.3K and has fallen 6.3% over the past week. Major altcoins are also under pressure, with Ethereum down 6% to $1,650 and 8.5% lower on the week. The total crypto market capitalisation has dropped 3.5% to $2.14 trillion.

Risk appetite falters as tech stocks plunge & Fed turns hawkish

The risk-off mood is being driven largely by developments outside of crypto. Technology and semiconductor stocks have come under heavy pressure globally. South Korea's KOSPI plunged 10% amid concerns that the AI and chip rally had become overstretched. Meanwhile, the Nasdaq fell 1.3% on Monday, and futures point to another 2.5% decline as the tech sell-off gathers pace.

What's notable is that crypto is no longer trading primarily on Middle East headlines. For weeks, Bitcoin was moving in response to developments surrounding Iran, oil prices, and inflation expectations. However, with a peace roadmap now in place and the Strait of Hormuz gradually reopening, attention has shifted back to growth, valuations, and interest rates.

This shift matters because Bitcoin's 20-day rolling correlation with the Nasdaq has climbed to 0.65, recovering sharply from -0.76 at the start of June. In other words, Bitcoin is once again behaving like a high-beta technology asset rather than a geopolitical hedge. 

There are two key drivers behind the sell-off in AI and technology stocks, which has seen SpaceX lose 16% and shed roughly $600 billion in market value in just three sessions. First, investors are questioning whether the enormous spending on AI infrastructure will generate sufficient returns. Second, markets are increasingly pricing in the possibility of a Federal Reserve rate hike later this year.

Higher interest rates tend to weigh on high-growth technology stocks and cryptocurrencies, which helps explain why both sectors are falling in tandem. Higher rate expectations are also lifting the USD, weighing on BTC/USD.

US Core PCE & Micron Earnings are BTC’s Next Test

The next major test comes tomorrow. Investors will be watching Core PCE, the Federal Reserve's preferred measure of inflation, for clues on the outlook for interest rates. At the same time, Micron Technology reports earnings after a 300% rally this year, providing another key test of whether investor enthusiasm for AI and memory-chip stocks remains intact.

A softer inflation reading or strong Micron results could help stabilise sentiment. However, if inflation remains elevated or Micron isn’t as perfect as is priced, the pressure on both technology stocks and crypto assets could intensify.

Bitcoin Technical Analysis

Bitcoin has recovered from the 59k 2026 low to 62k, but the bearish trend remains intact as it continues to trade below the 20-day and 50-day SMAs. Recent rejection at the 20 SMA is reinforcing that bearish bias which, combined with the RSI below 50, keeps sellers hopeful of further downside.

The immediate focus remains on whether BTC can hold 60k, with a daily close below this level exposing the market to a deeper sell-off.

On the upside, immediate resistance is seen at 63.5k, the 20 SMA, with a rise above this level opening the door to 67.5k, the June 15 high. A break above here would create a higher high, exposing the 50 SMA at 71.4k. 

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