After failing to break above $70,000 early in Monday trading, Bitcoin (BTC) fell below $67,000 before recovering some losses during Tuesday trading.
Bitcoin is down 1.5% in the past 24 hours, trading at $67,667. Ethereum (ETH) is down around 2.6%. Additionally, Litecoin (LTC), Polkadot (DOT), and Internet Protocol (ICP) tokens are down between 4% and 5%.
Despite the pullbacks, Solana (SOL) has been a strong performer, rising 2.4% to $163, though it is still below its weekend high of $170.
Bitcoin mining stocks also suffered, with the exception of TeraWulf (WULF), which surged 12% on Monday after it pivoted to high-performance computing to power AI data centers.
Reasons for the decline
Looking at the possible reasons for the pullback, Bitcoin has been on a steady rise since falling below $60,000 11 days ago, suggesting a possible correction. Interest rates also rose sharply in Western economies on Monday, including a 10 basis point increase in both the 10-year US Treasury yield and the German Bund.
Looking at the bigger picture, Bitcoin has been in a stable to lower price range since hitting a high of $73,700 over seven months ago. The last attempt to break above $70,000 was in late July, but that also failed, with Bitcoin falling back below $52,000 days later.
Impact of earnings reports on markets
Upcoming quarterly earnings reports from US companies could impact investors’ risk appetite in the stock market, and thus cryptocurrencies due to the strong correlation between the two types of assets, according to cryptocurrency trading firm Wincent.
“It’s a risk-off week given Bitcoin’s recent performance and the US earnings week which adds to the conservative mindset,” a Wincent spokesperson said in a Telegram message.
He added: We can expect a slight decline this week, and then watch for the possibility of a new rise to record levels as the US elections approach.
