Market Bloodbath: Nasdaq Plunges 4.6% as Nvidia (NVDA) Sinks 8% in Massive Sell-Off

Key Takeaways

• Bitcoin dropped beneath the $60,000 threshold, facing a 13% quarterly decline that would mark its second consecutive quarterly drop
• Crypto liquidations exceeded $180 million within a 24-hour period, with long positions bearing the brunt
• Bitcoin spot ETFs in the United States saw their seventh consecutive week of withdrawals, accumulating more than $4 billion in monthly exits
• Escalating US-Iran confrontations near the Strait of Hormuz spooked investors, though reports of a temporary ceasefire boosted equity futures
• The S&P 500 shed nearly 2% while the Nasdaq plummeted 4.6% during the previous week, with Nvidia and Alphabet each declining over 8%

The flagship cryptocurrency faces mounting pressure as heightened geopolitical risks, persistent ETF withdrawals, and an unyielding Federal Reserve stance combine to drive prices lower at the start of a fresh trading week.

BTC Approaches Historic Back-to-Back Quarterly Decline

Bitcoin changed hands below the $60,000 mark on Monday, slipping approximately 0.4% during the session. Despite attempting to reclaim the $60,000 level during weekend trading, the digital asset encountered aggressive profit-taking.

The leading digital currency has surrendered more than 30% of its value year-to-date. The asset is tracking toward a 13% loss for the quarter, a development that would represent just the third instance in Bitcoin’s trading history of recording consecutive quarterly declines.

Spot Bitcoin exchange-traded funds in the United States experienced their seventh week in a row of net redemptions. Approximately $1.8 billion exited these investment vehicles during the preceding week alone. Cumulative monthly withdrawals have now surpassed the $4 billion threshold.

Institutional appetite is unmistakably cooling. A strengthening US dollar combined with mounting anticipation that the Federal Reserve will maintain elevated interest rates for an extended period are compounding downward momentum.

Market participants have been incorporating the possibility of interest rate increases following inflation and employment figures that exceeded forecasts. Traders are now focused on Thursday’s employment report, which has been rescheduled due to the Independence Day holiday.

Middle East Confrontation Weighs on Risk Appetite

Tensions between the United States and Iran intensified over the weekend following Washington’s accusations that Tehran launched attacks in the vicinity of the Strait of Hormuz. President Trump issued warnings of additional military responses via Truth Social.

An administration representative subsequently indicated both nations would “stand down for now,” permitting maritime traffic to resume normal operations. This development provided support to equity futures during early Monday trading.

Contracts linked to the S&P 500 advanced 0.5%, Nasdaq 100 futures increased 0.6%, and Dow futures appreciated 0.3%. Oil markets also strengthened, with Brent crude adding 0.8% to reach $72 per barrel while West Texas Intermediate climbed 1.1% to $70.

The preceding week inflicted substantial losses across equity markets. The S&P 500 retreated nearly 2% while the Nasdaq surrendered 4.6%. Nvidia and Alphabet each tumbled more than 8%. Meta, Apple, and Amazon all declined in excess of 4%. SpaceX shares collapsed 17%.

The Dow Jones Industrial Average demonstrated relative resilience, posting a 0.6% weekly gain. Merck surged 13% while Johnson & Johnson advanced 11.5%, propelled by robust performance across healthcare equities.

Digital Asset Markets Gripped by Extreme Fear

The Crypto Fear & Greed Index registered “Extreme Fear” territory on Monday. The aggregate cryptocurrency market capitalization contracted 3.38% over 24 hours to $2.02 trillion.

Liquidations totaling over $180 million swept through markets during the previous day, with leveraged long positions accounting for the majority. Ethereum declined 0.2% to approximately $1,564. Market observer Ali Martinez cautioned that sustained selling pressure from large holders could drive Ethereum toward $1,237 or potentially $1,089.

Analyst Michaël van de Poppe noted that markets maintaining stability despite pervasive fear represents “a pretty interesting signal.” He suggested that a recovery above $61,000 could establish a pathway toward $65,000 as the next objective.

Solana emerged as one of the limited bright spots, appreciating roughly 1.2%. Dogecoin retreated 2.2%.

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