The collapse of major tech companies, and oil price fluctuations shake the markets: Will Bitcoin stay above $60,000?

Key Points
Rising oil prices and increasing inflation rates among traders have led to expectations of a more aggressive monetary policy from the U.S. Federal Reserve.
Large outflows from Bitcoin exchange-traded funds in June indicate that the cryptocurrency is currently failing to serve as a hedge in the stock market.
The Nasdaq 100 index dropped 7.5% over the seven days leading up to June 10, resulting in a $2.7 trillion loss in market value. This decline is more than double Bitcoin's (BTC) total market cap and has caused traders to become cautious, especially as inflation data is affected by rising oil prices. Traders now fear that Bitcoin’s support level near $60,000 is under threat.

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Nasdaq 100 futures (left) versus Bitcoin/USD pair (right). Source: TradingView

The ongoing war in Iran has pushed Brent crude oil prices above $90, prompting investors to fear an economic slowdown and expect the continuation of tighter monetary policy for longer than anticipated. Regardless of labor market conditions, disposable income tends to decrease.

The U.S. Department of Labor reported on Thursday that its Producer Price Index jumped 6.5% since May 2025, the highest level since 2022. Traders now see a 40% chance of the Federal Reserve raising interest rates by September, up from 5% a month ago, according to the CME FedWatch tool.

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Annual base rate for two-month Bitcoin futures contracts. Source: Laevitas

Bitcoin futures traded on Thursday at a premium below the neutral 4% level compared to spot markets, indicating decreased demand for bullish leverage. Meanwhile, SpaceX’s (SPCX US) $75 billion IPO received more than double the demand available, showing that investors have not yet lost hope for further growth in the tech sector.

AI infrastructure companies are in urgent need of liquidity to fund expansion, which partly explains the negative market reaction. Google (GOOG US) announced plans to raise $80 billion, while Oracle (ORCL US) and Super Micro Computer (SMCI US) followed with $40 billion and $7 billion respectively. The upcoming SpaceX stock offering on Friday is likely to set the tone for future IPO trends.

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Performance of selected stocks in the AI sector. Source: TradingView and Cointelegraph

It is premature to consider the AI sector a bubble after SpaceX achieved the largest IPO in history with a market cap of $1.77 trillion. Moreover, the U.S. stock market reacted positively after President Donald Trump canceled planned strikes on Iran, signaling a resumption of negotiations to reopen the Strait of Hormuz.
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