Bitcoin pulled back to $106,000 on July 1 following its historic June close, driven by profit-taking and spillover weakness from tech stocks. The retreat occurred despite bullish momentum indicators suggesting potential for $200,000 targets, highlighting how short-term sentiment can override technical setups. Altcoins mirrored the decline, with total crypto market cap dropping 4.1% intraday.
Political volatility amplified the sell-off. The Musk-Trump dispute over fiscal policy fueled broader market anxiety, particularly regarding energy subsidies and employment impacts—sectors relevant to Bitcoin’s mining ecosystem. This reinforced BTC’s ongoing correlation with traditional risk assets during periods of macroeconomic uncertainty.
Technically, Bitcoin broke below two key support levels, increasing near-term bearish pressure. Analysts noted veteran holders (“OGs”) were “dumping on Wall Street,” suggesting long-term investors capitalized on the June rally. This profit-taking phase may establish $100,000 as a new consolidation zone before the next leg up.
