Bitcoin slid more than 2% to $67,000 on Tuesday, reflecting broader risk aversion across markets as Wall Street reopened after the Presidents’ Day holiday.
Summary
Tech and crypto remain under pressure, while defensives are mixed, with selective strength emerging in activist-driven and travel names.
Bitcoin has fallen about 29% over the past month, sparking debate over whether the downturn is nearing a bottom or has further to run.
“I believe that bitcoin has already capitulated with that big move from 100k-> 60k,” one analyst says.
Crypto weakness coincided with renewed pressure on technology and software shares, where investors continued to grapple with the potential for AI-driven disruption. The Nasdaq-100 underperformed, slipping 0.3%, while the iShares Expanded Tech-Software Sector ETF dropped more than 2.7% in midday New York trading. The software-focused fund has now declined in 11 of the past 15 sessions, pushing its year-to-date losses to nearly 25%.
Broader equity indices were largely flat, masking sharp divergences beneath the surface. Financial stocks rebounded after weeks of weakness, while consumer staples lagged.
Travel Tickers
Travel-linked shares stood out as a pocket of strength. Norwegian Cruise Line Holdings surged 11% after Elliott Investment Management disclosed a stake exceeding 10% and signaled plans to push for strategic changes following the cruise operator’s prolonged underperformance.
Peers rallied in sympathy, with Carnival Corp. rising about 4% and Royal Caribbean Group gaining 3%.
In travel and leisure, Airbnb Inc. added 3.7%, extending momentum from last week’s earnings report. Southwest Airlines Co. jumped more than 6% following a wave of analyst upgrades from Susquehanna and UBS.
But what about Bitcoin?
The top cryptocurrency has fallen about 29% over the past month, sparking debate over whether the downturn is nearing a bottom or has further to run.
Trader Altcoin Sherpa pointed to past cycles for comparison, noting that both the 2017–2018 and 2021–2022 bear markets saw steep 75–85% drawdowns and took roughly a year from all-time high to final bottom. Each cycle ended with a sharp capitulation event — including the 2018 plunge from $6,000 to $3,000 and the 2022 crash tied to FTX — followed by several months of accumulation.
However, Sherpa argues the current cycle may differ. The 2024–2025 rally was slower and more consolidation-heavy than prior vertical surges, and structural factors such as spot ETFs, reduced speculative excess, stronger support in the $50,000–$70,000 range, and already-flushed altcoin froth could shorten the bear market timeline, potentially avoiding a full 365-day decline.
“I believe that bitcoin has already capitulated with that big move from 100k-> 60k,” Sherpa says. “I believe we are now in the ACCUMULATION phase of the cycle. Accumulation can last anywhere from a few weeks to several months.”
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