What happened: Wall Street turned cautious as the Nasdaq Composite fell 1.03% to 26,061.19, weighed down by a sharp correction in semiconductor and AI stocks following slowdown warnings from industry leaders. At the same time, Brent crude surged past $109 a barrel due to Middle East pipeline disruptions, US 10-year Treasury yields touched 5%, and markets braced for the upcoming Federal Reserve rate decision. Amid the traditional market turmoil, Bitcoin gained 0.8% to trade at $77,911.38, though it struggled to break the $80,000 resistance level.
Why it matters: Macro pressures like soaring energy costs and rising bond yields create a challenging environment for risk-on assets, directly spilling over into crypto sentiment. With Bitcoin eyeing the $76,000 support and $82,000 resistance levels while tracking upcoming Fed policy moves and the Senate's Clarity Act, crypto investors are keeping a close watch on how traditional market jitters will impact digital assets.
