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Bitcoin slipped to about $86,666, then rebounded to roughly $87,500 in early New York trading.
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The 14‑day RSI for Bitcoin dropped to 32, flirting with “oversold” territory, while the one‑week put/call premium fell to ~4.5% from ~11%.
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On Wall Street, the Nasdaq Composite fell 0.6%, the S&P 500 dipped 0.2%, and the Dow Jones Industrial Average rose 0.4% despite tech weakness.
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In individual stocks, Nvidia Corp tumbled more than 6% after a report that Meta Platforms may shift billions in orders toward Alphabet Inc.’s AI chips, while Alphabet surged over 2%.
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Dow roars back 701 points at the close as Fed hopes light a fire under Wall Street
Markets snapped back hard into the green by the close on Tuesday, with the Dow Jones Industrial Average ripping 701 points higher, or 1.5%, after a midday reversal flipped the entire tone.
The S&P 500 clawed up 1%, while the Nasdaq Composite added 0.7%, bouncing from earlier losses that had the S&P down 0.7%, the Dow off over 100 points, and the Nasdaq sinking more than 1%.
Fueling the comeback? Rate cut optimism. Traders are now betting with 83% confidence on a quarter-point Fed cut in December, according to the CME FedWatch tool.
The rumor mill cranked even harder after Bloomberg reported that Kevin Hassett, currently heading the White House National Economic Council, is in the lead to take over as Fed chair.
Kevin is seen as a dove, and Wall Street is betting that if Donald Trump taps him, lower rates could be locked in.
Adding to the buzz, Treasury Secretary Scott Bessent told CNBC there’s a “very good chance” Trump names a new Fed chair “before Christmas.” And John Williams, head of the New York Fed, basically opened the door Friday by saying there’s “room to lower rates in the near term.”
Nasdaq slips as Nvidia stumbles, Alphabet soars on Meta chip rumor
Wall Street took a breather on Tuesday after Monday’s AI‑fueled rally, with the Nasdaq Composite dropping 0.6%, giving back a chunk of its gains.
The S&P 500 dipped 0.2%, while the Dow Jones managed to stay green, rising 163 points, or 0.4%, powered by some old-economy strength.
The pressure came mostly from Nvidia, which plunged more than 6% after a report from The Information suggested Meta might redirect its AI chip orders toward Alphabet’s in-house silicon, rather than sticking with Nvidia’s GPUs. That sparked a 2% jump in Alphabet’s stock, and traders were quick to rebalance on the news.
This came right after a huge Monday pop where the Nasdaq soared 2.7%, its best single-day gain since May 12. The S&P 500 rose 1.6%, and the Dow climbed 0.4%.
The optimism was largely built around AI momentum and growing hopes the Fed might finally ease rates, but now that narrative’s wobbling, at least in the chip space.
Bitcoin wobbles as tech stocks rally, and everyone’s watching both
Bitcoin’s acting up again, and not in the fun, moon-bound way. The OG crypto slipped 2.4% to $86,666 early Tuesday in New York, shaking out some weak hands after last week’s brutal slump.
The drop wiped over $1 trillion off the market, and even though it’s crept back to around $87,500 as of 6:39 a.m., that fragile mood is still hanging heavy.
ETFs holding Bitcoin are on track to bleed more this month than they ever have since launching. BlackRock’s iShares Bitcoin Trust has already logged $2.2 billion in outflows, blowing past its previous monthly record.
Traders are also pulling back from hedging downside risk. The cost of one-week puts over calls just tumbled to 4.5%, down from 11% on Friday.
Still, technicals aren’t looking pretty. The 14-day RSI? It’s at 32, sliding dangerously close to oversold territory (anything below 30 rings alarm bells). And implied volatility, which tracks how wild folks think prices will get, just fell to levels we last saw back in April, when tariffs sparked a sell-off.
What to know
Big Tech stumbled and Bitcoin wobbled, as Nvidia tanked, Alphabet surged, and markets flipped cautious after Monday’s AI high.
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