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Crypto Extends Slide With Bitcoin Near $68,000 as ETF Outflows Persist and Tech Link Tightens

Upcoming Federal Reserve minutes plus the PCE inflation reading could reset positioning.

Overview

  • Bitcoin hovered around $68,000 on Tuesday as losses broadened across tokens, with memecoins underperforming during thin, holiday‑affected trading.
  • Bitcoin’s correlation with the Nasdaq has flipped strongly positive since early February, and tech futures fell again as AI disruption fears weighed on equities; gold also pulled back.
  • Spot crypto funds continued to see withdrawals, including roughly $360 million in net outflows from bitcoin ETFs last week, while sentiment gauges hit extreme fear even as large holders moved coins off exchanges.
  • Derivatives data showed reduced open interest and recent heavy liquidations, with options pricing still skewed to downside protection though implied volatility has eased from its peak.
  • Institutional shifts added to the cautious tone as Harvard cut its IBIT stake by 21% and opened an ETH position, and corporate holders such as Strategy Inc. and Metaplanet disclosed sizable markdowns.