Bitcoin Dips as Tech Sell-Off Hits US Stocks, Micron Plunges Over 30%

Bitcoin experienced a notable decline on Thursday, sliding alongside US equities as a sharp sell-off in technology stocks tempered the optimism generated by lower-than-expected inflation data earlier in the week. The leading cryptocurrency by market capitalization fell approximately 1.5% from its local highs, retreating to around $64,500 in afternoon trading. This pullback came after two consecutive days of bullish price action driven by the June Consumer Price Index and Producer Price Index reports, both of which indicated a cooling inflationary environment.

The broader market mood shifted notably on Thursday as retail investors engaged in aggressive profit-taking, particularly in high-growth technology shares. Micron Technologies, a bellwether for the semiconductor industry, plunged 15% in a single session, pushing its cumulative losses past 30% from the record high it set on June 22. According to market commentary from the trading resource The Kobeissi Letter, the scale of retail selling has reached historic levels, with total retail turnover in single stocks surging to $370 billion, up from $220 billion at the start of 2026. Over the past two weeks alone, sales of Tesla and Apple shares by retail investors have exceeded $200 million.

Key Facts

• Bitcoin dropped 1.5% from three-week highs, trading near $64,500 on Thursday.
• The decline followed a sell-off in US tech stocks, with Micron Technologies losing 15% in one day and over 30% from its June record.
• Lower-than-expected June CPI and PPI data had initially boosted risk assets, but retail profit-taking reversed gains.
• Retail stock turnover hit $370 billion, and sales of Tesla and Apple exceeded $200 million in two weeks.
• Technical analysts flagged resistance at the 50-month EMA ($65,900) and AVWAP from the May peak near $82,000.

Tech Selling Puts the Brakes on Crypto and Risk-Asset Upside

The initial euphoria from the inflation data was short-lived. While both the CPI and PPI readings came in below economists' forecasts, signaling that the Federal Reserve's tightening campaign might be nearing its end, the positive sentiment quickly faded as traders shifted focus to the overheated tech sector. The Nasdaq Composite and S&P 500 both retreated from their intraday highs, dragging Bitcoin and other cryptocurrencies lower in sympathy. Analysts noted that the correlation between Bitcoin and tech stocks remains elevated, with the cryptocurrency acting as a high-beta proxy for risk appetite.

The sell-off in Micron is particularly concerning because it reflects broader anxieties about the sustainability of the artificial intelligence and semiconductor boom. Micron had been one of the standout performers in 2026, riding a wave of AI-related demand for memory chips. However, the sharp reversal suggests that investors are now questioning valuations and bracing for a potential slowdown. The Kobeissi Letter highlighted that retail investors are locking in gains after what has been described as a historic tech rally, and this behavior is likely to continue exerting pressure on the sector.

Bitcoin's decline was also mirrored in the altcoin market, though losses were more muted. Ether (ETH) slipped 0.58% to $1,858, while XRP fell 0.70% and Solana lost 0.31%. The overall crypto market capitalization dropped by roughly $20 billion as risk aversion took hold.

Bitcoin Price Action: Rejection at Key Resistance Levels

From a technical standpoint, Bitcoin's price action on Thursday reinforced the notion that the cryptocurrency is struggling to break out of its current range. The recent rebound from lows near $59,000 had carried the price to three-week highs of approximately $65,500, but sellers emerged at that level, driving the market back down. Trader and analyst Rekt Capital noted that BTC/USD was showing initial signs of rejection from its 50-month exponential moving average (EMA), currently located at $65,900. This moving average has historically served as a major support or resistance level during bull and bear phases.

Another key metric is the anchored volume-weighted average price (AVWAP) from Bitcoin's run to $82,000 in early May. Market commentator Exitpump argued that this level would likely cap any further upside and lead to a stronger rejection. In a post on X, Exitpump stated, "Price is finally going to retest the AVWAP from 82K top that lead to strong local downtrend. To me such retest should cap the upside and give stronger rejection." This suggests that Bitcoin may need to accumulate more time or undergo a deeper correction before attempting a sustained move higher.

Short-term traders have also been adjusting their positions. Data from the futures market shows a slight decline in open interest, while funding rates have turned slightly negative on some exchanges, indicating that leveraged long positions are being unwound. The liquidation heatmap reveals a cluster of large liquidations around $64,000, which could act as a magnet for price in the coming sessions.

Historical Context: Copying the 2022 Bear Market?

Rekt Capital has drawn parallels between current Bitcoin price behavior and the 2022 bear market. He previously warned that the next macro bottom would not come until later in the year, and Thursday's rejection reinforces that view. In 2022, Bitcoin staged several relief rallies during the downtrend, each of which was met with selling pressure near key moving averages. If history repeats, the current rebound could be another such relief rally before the eventual capitulation.

However, there are also factors that could support a different outcome. The inflation data, if sustained, could prompt the Federal Reserve to pivot to a more accommodative stance later this year. Lower interest rates generally increase the attractiveness of risk assets like Bitcoin. Additionally, the upcoming Bitcoin halving in 2028 is still far off, but the market tends to price in expectations well in advance. Some analysts believe that the current weakness is a healthy consolidation within a long-term bull market.

Institutional activity has been mixed. While spot Bitcoin ETFs saw net inflows earlier in the week, Thursday's data showed a modest outflow. The GrayScale Bitcoin Trust (GBTC) premium has narrowed, suggesting waning demand. Meanwhile, on-chain metrics such as the number of active addresses and transaction counts remain stable but not accelerating, indicating that the broader adoption narrative has not gained fresh momentum.

The sell-off in tech stocks also serves as a reminder that the macroeconomic environment remains uncertain. The Federal Reserve has not yet committed to easing, and any uptick in inflation or labor market strength could delay rate cuts. For Bitcoin, this means that the path of least resistance may be sideways or downward until there is greater clarity on the monetary policy front.

As the market digests the latest developments, traders will be watching for Bitcoin's ability to hold support at $63,500, which corresponds to the 200-day moving average. A break below that level could open the door to a retest of $60,000 or even lower. Conversely, a recovery above $65,900 would invalidate the rejection narrative and potentially trigger a short squeeze that propels the price toward $68,000.

Source:Cointelegraph News