Bitcoin slipped below $64,000 early Tuesday, hitting a low of $63,465 before recovering to around $64,314, as a steep selloff in U.S. stocks dragged the crypto market lower. Ethereum showed relative resilience, dipping to $1,813 but holding the $1,800 support level, last trading at $1,830. The broader market remains in 'extreme fear' territory, with the Crypto Fear & Greed Index lingering at low levels.
US Tech Stocks Rout: IBM Crashes 13%
The three major U.S. stock indexes closed lower on Monday: the Dow fell 1.66%, the S&P 500 dropped 1.04%, and the Nasdaq declined 1.13%. Tech stocks bore the brunt of the selloff. IBM plunged 13% in its worst single-day drop since 2000. Adobe and Oracle each shed about 4.6%, Salesforce lost 3.7%, and Microsoft fell 3.2%. Application software and IT services sectors were among the worst performers. In contrast, precious metals and non-ferrous metals sectors rallied, signaling a shift from risk assets to safe havens. The Nasdaq Golden Dragon China Index also slipped nearly 1%.
BTC Correlation with Tech Stocks Hits Record
Bitcoin's decline once again underscored its tight correlation with U.S. tech stocks. The 30-day rolling correlation between Bitcoin and the IGV software ETF has surged to 0.73, with volatility correlation reaching 0.88—the highest on record. This means that any selloff in tech stocks puts immediate downward pressure on Bitcoin. With global liquidity tightening, BTC faces continued downside risk in the near term.
Worst Start to a Year for Bitcoin in 2026
Bitcoin has fallen about 23% in the first 50 trading days of 2026, its worst start to a year ever. Throughout February, the Crypto Fear & Greed Index has never left the 'extreme fear' zone, reflecting deep market pessimism. Traders are now watching U.S. stock performance, Federal Reserve policy signals, and whether Bitcoin can defend the $63,000 support level. If stocks continue to weaken, a test of the $60,000 round number cannot be ruled out.