Risk assets took a beating Wednesday. The NASDAQ dropped 3% in a renewed tech-sector rout, and bitcoin fell below $60,000 for the first time in weeks. The sell-off comes as market volatility reshapes how investors are pricing in interest rate moves, hitting everything from equities to crypto.
The tech rout
The NASDAQ's 3% slide was broad-based, with major tech names taking the brunt of the selling. The move extended a week-long decline that has erased billions in market value. No single catalyst stood out — rather, a grinding reassessment of growth stocks in a higher-for-longer rate environment appears to be driving the exit.
Bitcoin caught in the downdraft
Bitcoin fell below the $60,000 threshold Wednesday, a level that had held as support for most of the past month. The drop tracked the broader risk-off mood rather than any crypto-specific news. When equities tumble, correlated assets tend to follow — and bitcoin has been trading more like a tech stock than a safe haven in recent months.
Rate expectations in flux
The volatility is forcing a rethink of the interest rate outlook. Markets had been pricing in a potential cut later this year, but the renewed sell-off is complicating that narrative. If risk assets keep sliding, it could feed into the Fed's calculus — or it could simply reflect a repricing of the same uncertainty that has dogged markets all year.
Traders are now watching for any Fed commentary this week that might acknowledge the market stress. The next CPI print is due in a few days, and it could either calm nerves or amplify the sell-off. For now, both the NASDAQ and bitcoin are testing levels that could set the tone for the rest of June.
