Bitcoin 'vulnerable to further weakness' as token tumbles amid tech rout

Bitcoin 'vulnerable to further weakness' as token tumbles amid tech rout Ines Ferré · Senior Business Reporter Updated Tue, June 23, 2026 at 10:38 PM GMT+2 1 min read BTC-USD What happened: Bitcoin ( BTC-USD ) dropped more than 3% on Tuesday to hover above $62,400 per token. What's behind the move:  The world's largest cryptocurrency sank alongside the overall market as tech stocks fell. Bitcoin's trajectory this week has mostly followed the major averages, particularly the tech sector.

"We think Bitcoin's renewed sell-off reflects a combination of: (i) a hawkish shift in the Fed outlook; (ii) record institutional ETF outflows and thinning liquidity," Deutsche Bank strategist Marion Laboure wrote in a note on Tuesday. The token turned lower "as investors seem keen to cut their risk exposure all round," noted David Morrison, senior market analyst at Trade Nation. "As things stand, it looks vulnerable to further weakness should investors continue to reduce their equity holdings," he added.

What else you need to know: Bitcoin has struggled to make a comeback this year, with strategists warning a cyclical bear market for cryptocurrencies may not be over. However, long-term holders throwing in the towel could signal that the market is nearing a potential turning point. "Selling from long-term BTC holders (6+ months) continues to increase which is a typical sign of late-cycle capitulation," Compass Point analyst Ed Engel noted on Monday.

Bitcoin has underperformed broader markets since the March 30 market lows. The token briefly fell to $60,000 in early June, its lowest level since late 2024. The token is down roughly 28% year to date and about 50% from its all-time high last October.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre .