Tech Slump Weighs on Crypto Markets; Hedge Fund Sees Bitcoin Testing $70K Soon

Bitcoin Slumps as Macro Pressure Mounts; Hedge Fund Predicts $70K Target

Crypto markets continue their downward slide, now facing added pressure from broader economic uncertainty.

While the bursting of the memecoin bubble in January was a major factor in the recent selloff, this week’s drop has accelerated due to mounting risk aversion in traditional markets.

The Nasdaq, which had been on a strong run, is now down nearly 7% over the past few sessions, with Thursday’s 2% decline led by a sharp selloff in chip stocks. Nvidia (NVDA) tumbled 5% after its latest earnings report failed to impress investors.

Valuations in tech had reached stretched levels, and the latest correction is being compounded by fresh trade concerns, as President Trump announced that new tariffs on Mexico, Canada, and China will take effect next week.

“Risk assets are flashing warning signs,” said Quinn Thompson, founder of hedge fund Lekker Capital. “Inflation remains stubbornly high, making rate cuts unlikely in the near term. Meanwhile, long-term inflation expectations are rising, and economic data suggests the post-Trump election rally may have been short-lived.”

Thompson sees little reason for optimism in crypto. “Bitcoin has seen every possible bullish narrative come and go, yet prices remain stuck. Investors seem to have forgotten that bear markets happen.” He expects Bitcoin to test the $70,000 level by the end of March.