Bitcoin (BTC) fell below $66,000 on Tuesday, sliding to $65,500 as the Nasdaq Composite shed more than 1% in a broad tech selloff. AI-related stocks suffered heavy losses, with AMD, Intel, Micron, and Broadcom dropping 4% to 8%, while Nvidia fell 1.9%. SpaceX (SPCX) closed higher by 4.8% at $201.80 but dipped about 10% from its morning high above $225. The broader crypto market also weakened, with major altcoins like XRP and Solana posting gains on the day but bitcoin locked in a tight range.
SpaceX Acquires Cursor in $60 Billion All-Stock Deal
SpaceX agreed to acquire AI coding platform Cursor in a $60 billion all-stock transaction, marking one of the largest acquisitions in the artificial intelligence sector, according to reports. The deal comes just days after SpaceX’s landmark IPO, which valued the company at more than $2 trillion. Cursor, founded in 2023 by four MIT graduates, has become a leading AI coding assistant, competing with Anthropic’s Claude Code and OpenAI’s Codex. SpaceX shares surged 20% on Monday and added another 9% in pre-market trading, pushing the company’s valuation above $2.7 trillion and past Amazon’s $2.6 trillion market cap.
Fed Meeting and Polymarket Bets
All eyes are on the Federal Reserve as it begins its two-day policy meeting, the first under new Chairman Kevin Warsh. Markets see zero chance of a rate change at this meeting, but traders on Polymarket are betting on what Warsh might say at his post-meeting press conference. A mention of “inflation” is the most active market, with a 45% chance Warsh says the word 40 or more times, a 28% chance 50 or more times, and a 16% chance 60 or more times. There’s a 95% chance Warsh says the term “rate cut,” and a 14% chance “crypto” or “bitcoin” gets a mention. Traders give “artificial intelligence” or “AI” a 70% chance of being said.
Elon Musk’s Net Worth Tops Bitcoin’s Market Cap
SpaceX’s continued rally has pushed Elon Musk’s net worth above $1.4 trillion, surpassing bitcoin’s market cap of $1.32 trillion. SpaceX shares at $215 are now higher by almost 60% from their IPO price of $135. Meanwhile, bitcoin remains locked in a brutal bear market, down 50% from its all-time high of $126,000, with investor apathy growing as capital rotates into AI and other sectors.
Oil Tumbles on Iran Deal
Oil prices deepened losses after the Wall Street Journal reported a proposed U.S.-Iran deal would allow Tehran to immediately resume selling oil. WTI crude fell as much as 5.8% to below $76 a barrel, its lowest since early March. Goldman Sachs lowered its oil price forecasts, now seeing Brent crude averaging $80 per barrel in Q4, down from $90, and $75 in 2027. The decline in oil is likely to ease inflation pressures, with the 10-year Treasury yield down 4.4 basis points to 4.21% from near 4.70% about one month ago.
Bank of Japan Rate Hike
The Bank of Japan raised its policy rate by 25 basis points to 1%, its highest since 1995, as it continues to combat rising inflation. History shows BOJ tightening cycles often coincide with U.S. recessions. Despite the hike, bitcoin climbed above $66,000 after the announcement as markets focused on the BOJ’s decision to pause bond tapering, a move that could help limit upward pressure on long-term yields and support risk assets.
U.S. Housing Starts Plunge
May housing starts unexpectedly fell 15.4% from April to an annualized pace of 1.177 million, well below economist expectations for a rise. The surge in interest rates appears to be taking a bite out of the housing market, with the NAHB Housing Market Index falling to 35 in June from 37 in April.
Coinbase Launches Tokenized Stocks
Coinbase announced plans to launch tokenized U.S. stocks for customers in eligible markets outside the United States. The products will be backed by underlying shares and allow investors to receive dividends while trading and transferring the assets onchain. The move joins a growing trend among crypto and fintech firms to bring traditional equities onto blockchain networks.
Hyperliquid’s HYPE Hits Fresh All-Time High
The native token of Hyperliquid (HYPE) broke above $76 to a fresh record, surging another 13% over the past 24 hours. Hyperliquid ETFs attracted $178 million in inflows since their debut last month, while bitcoin and ether counterparts endured relentless selling. The broader bet is that Hyperliquid could become a financial juggernaut to trade all kinds of assets.
SATA-STRC Spread Widens to Record
The spread between Strategy’s STRC and Strive’s SATA bitcoin perpetual preferred stocks widened to a record $5.78. SATA trades at $99.99 near its $100 par value, offering a 13% yield, while STRC at $94.15 offers 11.5%. The divergence is driven by SATA’s transition to daily dividend payments compared to STRC’s twice-monthly schedule.
Robinhood Cuts 10% of Workforce
Robinhood announced a 10% reduction in its full-time workforce, about 300 positions, as part of cost-cutting efforts. Shares rose 2% in premarket trading. The company joins other fintech firms like Block and Coinbase in recent layoffs.
Long-Term Bitcoin Holders Resist Selling
Long-term bitcoin holders remain largely unfazed despite a 50% drawdown from the all-time high. Realized profits average only $50-100 million per day, modestly above the 2022 bear market lows. With an average cost basis of $49,413, LTHs are comfortably in profit but choosing not to sell.
Crypto Spot ETF Flows Show Rotation
U.S. spot bitcoin ETFs lost $64 million on Monday, but the outflow was almost entirely from Grayscale’s GBTC, which shed $124 million. BlackRock’s IBIT actually took in $66 million. Meanwhile, ether ETFs gained $22.5 million, Hyperliquid funds $17.2 million, and XRP and Solana funds about $2.8 million each, suggesting a rotation into alts.
Uniswap’s UNI token surged 12% after Standard Chartered initiated coverage with a bullish $100 price target by 2030, citing the explosion in tokenized assets in DeFi. The broader crypto market remains focused on the Fed’s policy decision and potential rate cuts later this year.
Source: Coindesk News