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Trading firm Wintermute’s options desk sees Bitcoin confined to a narrow $61,242–$63,563 range on Tuesday, as correlations across crypto assets continue to climb and no new ETF-driven demand emerges.
Crypto markets extended their decline in midday U.S. trading, with Bitcoin holding just above $60,000 after dropping more than 3% over the past 24 hours. Ether, Solana, and XRP posted similar losses, reflecting broad-based weakness across major tokens.
The selloff persisted even as equities recovered from a brief downturn, led by gains in AI-related stocks. The Nasdaq rose 0.8%, highlighting a divergence between risk assets and crypto markets.
Sentiment in crypto-focused equities also deteriorated. Strategy (MSTR) and its high-yield preferred STRC both extended losses, signaling rising stress in the digital asset treasury space. MSTR fell another 7.3% to a roughly 2.5-year low near $96, down more than 75% year over year. STRC dropped 6.35% to a record low below $82.
Criticism intensified around STRC, which was marketed as a low-volatility, income-style product. Market commentators pointed out that its recent decline undermines that positioning, with the stock now trading well below its intended stability range.
Meanwhile, political developments briefly intersected with markets as a planned White House signing of a housing bill was canceled. The legislation reportedly included provisions restricting the Federal Reserve from issuing a central bank digital currency until at least 2030.
Within digital credit markets, preferred securities tied to crypto exposure continued to weaken. STRC and Strive’s SATA both traded below par value, reflecting ongoing pressure as Bitcoin hovered under $61,000.
In equities, a rotation back into large-cap technology provided some support for broader markets. The “Magnificent Seven” stocks posted gains, helping lift the S&P 500 and Nasdaq 100 by nearly 1%, even as crypto sentiment remained fragile ahead of key earnings from Micron.
On the institutional side, Morgan Stanley expanded its digital asset strategy team by hiring former Anchorage Digital executive Joseph Medioli, signaling continued Wall Street interest in blockchain infrastructure.
Macro data also weighed on sentiment. Weak U.S. housing figures pushed Treasury yields lower, with the 10-year falling to 4.41%. Gold dropped below $4,000 per ounce and oil slipped toward $70, reinforcing a broader risk recalibration across markets.
Bitcoin itself briefly dipped to around $61,100 before stabilizing near $61,000, while remaining largely unchanged on the day. Analysts noted that despite minor stock market gains, crypto continues to struggle to find a durable bid amid weakening liquidity and uncertain macro signals.
