Bitcoin's value took a dive below $73,000 on Tuesday, aligning with a significant sell-off in US stock markets, driven by investor unease over upcoming corporate earnings. The cryptocurrency hit a fresh low for 2026 at $72,945, unable to maintain the $80,000 support level. This year, Bitcoin is down 15%, with its value nearly 45% lower than its peak of $126,267, prompting concerns about the potential end of its bull cycle.
The turbulence in the stock market is believed to be affecting the crypto sector. Investors are questioning the sustainability of costs linked to AI infrastructure and the high valuations in the tech sector since the end of the fourth quarter of 2025. There's a growing fear that revenues might not meet expectations, affecting major stocks like the Magnificent 7, S&P 500, DOW, and NASDAQ, which saw declines ranging from 0.70% to 1.77%. Notably, NVIDIA and Microsoft shares fell by 3.4% and 2.7%, respectively, with Amazon also experiencing a 2.7% drop.
Over 100 companies within the S&P 500 are poised to release their earnings this week, adding to the market's volatility. This situation could be an early indication of broader investor anxiety or a preview of the market's reaction to forthcoming earnings reports.
In the crypto landscape, leveraged positions are being liquidated, intensifying the sell-off. Bitcoin saw $127.25 million in long positions forcibly closed, while Ethereum experienced $159.1 million in similar liquidations. Despite some analysts viewing Bitcoin's current price as a bargain, buying from both retail and institutional investors has not significantly curbed the decline.
Joe Burnett, Vice President of Bitcoin Strategy at Strive, suggests that Bitcoin's present price action remains within historical volatility norms at $74,000, indicating that the 45% drawdown is typical of an asset in a rapidly monetizing state. If selling persists, data from TRDR.io indicates that bids are accumulating between $71,800 and $63,000, though the decision of traders to buy within this range remains uncertain. The broader economic and stock market outcomes are likely to continue influencing Bitcoin's price trajectory.