Daily Market Update: Nasdaq Drops 4.6%, Nvidia Tumbles 8% — Here’s What’s Driving the Sell-Off

TLDR

• Bitcoin fell below $60,000 and is on track for a 13% quarterly loss, its second back-to-back quarterly decline
• Over $180 million was liquidated from crypto markets in 24 hours, mostly from long positions
• US spot Bitcoin ETFs recorded a seventh straight week of net outflows, totaling over $4 billion in monthly losses
• US-Iran tensions in the Strait of Hormuz rattled markets, though a reported ceasefire pushed stock futures higher
• S&P 500 and Nasdaq fell nearly 2% and 4.6% last week, while Nvidia and Alphabet each dropped over 8%

Bitcoin is struggling to hold ground as geopolitical tension, ETF outflows, and a hawkish Federal Reserve push prices lower heading into a new week.

Bitcoin Heads for Second Straight Quarterly Loss

Bitcoin traded below $60,000 on Monday, down around 0.4% on the day. It attempted a breakout above $60,000 over the weekend but ran into sharp selling pressure.

The world’s largest cryptocurrency is now down more than 30% this year. It is heading for a 13% quarterly loss, which would mark only the third time in Bitcoin’s history that it has posted back-to-back quarterly declines.

US spot Bitcoin ETFs recorded a seventh straight week of net outflows. Around $1.8 billion left those products in the prior week alone. Total monthly outflows have now passed $4 billion.

Institutional demand is clearly weakening. A stronger US dollar and rising expectations that the Federal Reserve will keep rates higher for longer are adding to the pressure.

Markets have been pricing in possible rate hikes after inflation and labor market data came in stronger than expected. Investors are now watching Thursday’s jobs report, which has been moved up due to the July 4 holiday.

Geopolitical Tension Hits Risk Assets

US-Iran hostilities escalated over the weekend after Washington said Tehran carried out attacks near the Strait of Hormuz. President Trump warned of further military action on Truth Social.

A Trump administration official later said both sides would “stand down for now,” allowing vessels to move freely. That news helped lift stock futures early Monday.

Futures tied to the S&P 500 climbed 0.5%, Nasdaq 100 futures rose 0.6%, and Dow futures were up 0.3%. Oil also moved higher, with Brent crude gaining 0.8% to $72 a barrel and West Texas Intermediate rising 1.1% to $70.

Last week’s market damage was heavy. The S&P 500 fell nearly 2% and the Nasdaq dropped 4.6%. Nvidia and Alphabet each fell more than 8%. Meta, Apple, and Amazon all dropped more than 4%. SpaceX shares plunged 17%.

The Dow held up better, rising 0.6% for the week. Merck climbed 13% and Johnson & Johnson gained 11.5%, driven by strength in healthcare stocks.

Crypto Sentiment Remains Deeply Negative

The Crypto Fear & Greed Index showed “Extreme Fear” on Monday. The global crypto market cap fell 3.38% in 24 hours to $2.02 trillion.

Over $180 million was liquidated from the market in 24 hours, mostly from long positions. Ethereum fell 0.2% to around $1,564. Analyst Ali Martinez warned that if whale selling continues, Ethereum could drop to $1,237 or even $1,089.

Analyst Michaël van de Poppe said markets holding up despite the fear is “a pretty interesting signal.” He added that a move back above $61,000 could target $65,000 next.

Solana was one of the few bright spots, rising around 1.2%. Dogecoin dropped 2.2%.

The post Daily Market Update: Nasdaq Drops 4.6%, Nvidia Tumbles 8% — Here’s What’s Driving the Sell-Off appeared first on CoinCentral.