Crypto markets took a hit Tuesday as a broad tech selloff on Wall Street bled into digital assets, triggering more than $700 million in forced liquidations. Bitcoin slipped 2.5% and ether fell over 4%, dragging altcoins down with them. The moves came as the Nasdaq Composite dropped sharply, with traders pointing to a rotation out of risk-on assets.
Tech rout spills over
The selloff in equities didn't spare crypto this time. For much of 2026, the two markets have moved in tandem during stress events, and Tuesday was no exception. As the Nasdaq tumbled on concerns about higher-for-longer interest rates and stretched valuations, digital assets followed suit. Bitcoin briefly dipped below $62,000 before finding some buying support.
$717 million in forced exits
The damage was concentrated in leveraged positions. Data shows $717 million in long positions were liquidated across major exchanges over a 24-hour period, the largest single-day flush in weeks. Most of the action hit altcoins, where thin order books amplified the moves. Ether alone accounted for a big chunk of the liquidations, though Bitcoin longs also took a hit.
Altcoins feel the pain most
Smaller tokens fell at steeper rates than the two largest cryptocurrencies. The rotation out of risk assets tends to punish high-beta names first, and Tuesday was no different. Several top-20 tokens registered losses in the 6-10% range. The selloff was broad, with few green spots in the top 100.
For now, the market is watching the Nasdaq for direction. If the equity selloff deepens, crypto could face another leg lower. The next test will come Wednesday when the Fed's preferred inflation gauge is due — a number that could set the tone for risk assets into the end of the month.
