Bitcoin Slumps to $62,000 Amid Tech Stock Sell-Off

Bitcoin briefly touched $62,000 on Tuesday, but its price dropped due to a sell-off in U.S. technology stocks and hawkish comments from the Federal Reserve.

The decline was not limited to Bitcoin as major altcoins such as Ethereum (ETH), XRP, and Solana (SOL) fell more than 5% during the same trading session.

Research analyst Carlos Guzman at GSR Markets noted that the current market weakness is largely tied to a rotation out of AI-linked stocks.

Guzman explained, 'A sell-off is occurring in AI-related stocks, and the crypto market is reacting to this risk-off sentiment.'

The Federal Reserve's hawkish commentary on interest rates has added pressure, with investors pricing in a slower pace of rate cuts than previously expected, reducing the appeal of speculative assets like cryptocurrencies.