Bitcoin hovered around the low-$63,000s on Tuesday after briefly touching $64,660—its highest level in about two weeks—while US stock indexes slid in early trading. Equity weakness was led by semiconductor names, and the broader move again highlighted how tightly crypto traders are tracking traditional markets during risk-off sessions.
Despite the dip, BTC’s pullback remained orderly as US spot Bitcoin exchange-traded funds (ETFs) continued to post net inflows for a second day, according to data compiled by Farside Investors. That inflow backdrop helped keep a clear downside break from fully materializing as traders debated whether recent price action was only a correction or the start of a more durable shift.
Key takeaways
- BTC pulled back from a $64,660 peak (highest since June 22) as the S&P 500 and Nasdaq 100 fell after the Wall Street open.
- Semiconductor stocks led the equity decline, including Micron Technologies, which was down more than 9% at the time of writing.
- US spot Bitcoin ETFs recorded net inflows for a second consecutive day, providing a floor for sentiment.
- Traders said BTC’s correlation to the Nasdaq has shifted quickly compared with the prior week, changing how BTC is being positioned intraday.
- John Bollinger reiterated that the market is at a “critical point,” pointing to a potential daily “W”-shaped reversal setup.
Bitcoin steadies near $63,000 as stocks slip
TradingView data showed BTC/USD cooling after rising to $64,660, the highest print since June 22. At the same time, market participants watched US equities weaken: the S&P 500 was down about 0.6% and the Nasdaq 100 down around 2.1% during the same window.
Semiconductor weakness intensified the risk mood. Micron Technologies led losses, falling over 9% after highly anticipated earnings late last month (coverage linked by Cointelegraph noted the market attention around those results). That kind of tape matters for crypto not because chip earnings “cause” Bitcoin directly, but because traders often use broader liquidity and index exposure as a proxy for overall risk appetite.
The equity story also carried an index mechanics angle. Tuesday marked the day SpaceX was set to be added to the Nasdaq-100, following its own period of volatility in late June, according to Cointelegraph’s earlier coverage linked in the original report. A faster-than-usual index inclusion—The Kobeissi Letter described SpaceX’s path as the fastest inclusion in the Nasdaq-100’s history in commentary posted to X—can increase near-term positioning and momentum across related exchange-traded products.
ETF inflows and a shifting Nasdaq correlation
While stocks retreated, BTC avoided a sharper breakdown in part because institutional-style demand continued to appear consistent. Fresh inflow data showed US spot Bitcoin ETFs logging a second day of net inflows, as tracked by Farside Investors (see the ETF flow dashboard referenced in the original coverage).
Beyond inflows, some traders focused on the relationship between BTC and the Nasdaq. Trader Daan Crypto Trades reported on X that BTC’s correlation to the Nasdaq had flipped to +0.72 from -0.87 over the span of days the previous week. The implication for day traders is straightforward: when correlation regimes change, strategies built around “hedging” versus “high-beta” equity-like behavior can stop working as expected.
“That’s the difference between trading like a complete hedge/inverse and trading like a high beta tech stock. Right now we’re back to the middle on the 4H timeframe.”
In other words, BTC wasn’t behaving as either a clean hedge or a strict substitute for tech risk—it was in-between, which often makes short-term price action more sensitive to index moves and ETF flow headlines.
Traders split on whether this is a deeper correction
Market commentary remained mixed. Some traders argued that lower-timeframe structure still pointed to additional downside before any larger trend improvement. Cointelegraph-linked coverage mentioned Exitpump as cautious on low time frames, describing an expectation for a “rounding topping structure” and more downside thereafter.
Others framed it as a matter of history repeating through a broader S&P correction. Trader Killa suggested that a “true $BTC bottom” could align with the next correction in the S&P 500, adding that it would be worth checking whether past cycles—citing 2015, 2018, and 2022—repeat in a comparable manner. This is not a prediction of exact dates, but it reflects a common approach: use major equity drawdowns as a timing reference for when liquidity tends to return to risk assets.
For readers, the practical takeaway is that the market signal is not unanimous. ETF inflows and index correlation shifts can stabilize BTC even if technical charts continue to warn of further chop or pullbacks. The next reliable clue would be whether BTC can hold key intraday levels while equities remain heavy, or whether an ETF-flow tailwind can overpower equity weakness for longer than a single session.
Bollinger points to a “W” reversal at a critical juncture
Alongside the trading-floor debate, long-running technical commentary also resurfaced. John Bollinger, the developer of Bollinger Bands, posted additional bullish nuance on X, again emphasizing that the market appears to be at a decision point.
Cointelegraph’s earlier reporting linked in the original piece described Bollinger’s focus on a “W”-shaped reversal pattern developing on the daily timeframe, with the latest iteration potentially confirming a change in trend. Bollinger said last week that the newest setup could even cancel the existing downtrend—while acknowledging that in chart patterns, confirmation often requires follow-through.
On Monday, Bollinger added: “We are at a critical point,” and laid out the logic of how bullish and bearish formations tend to behave differently depending on the prevailing trend.
“In a bear market bullish setups break and in a bull market bearish setups break. So if this W pattern is successful I would see it as a confirmation of a change in trend.”
That framing matters because it highlights what investors should watch next: not just whether the “W” exists on a chart, but whether the market action after the supposed confirmation level actually holds, especially during equity-driven volatility.
As equities remain sensitive to corporate and index catalysts, and as crypto continues to react to ETF flow developments, the “critical point” Bollinger referenced may end up being less about one perfect pattern and more about whether buyers can defend the reversal attempt through the next round of risk fluctuations.
For the near term, traders should monitor two things closely: whether US spot Bitcoin ETF inflows persist as stocks trend lower, and whether BTC can sustain its reversal structure on daily and four-hour timeframes without another sharp correlation-driven selloff.
