Finance

Tech Stocks Tumble as U.S. Market Dips: Will Bitcoin’s Slide Continue Amid Fed’s Cautious Stance?

U.S. stocks fell, tech led the decline, and Bitcoin dropped to $107,000 amid government uncertainty and Fed’s rate caution.

byAndres Castro

November 13, 2025, 2:20 PM

A 3D render of a stylized, deep red bull sculpture composed of low-poly, angular geometric facets on a white background.

A digitally rendered, faceted red bull, often symbolizing aggressive financial markets. By MDL.

Executive Summary

U.S. equity markets experienced a broad decline, with the Nasdaq 100 sinking nearly 2%, due to uncertainty from missing economic data following a government shutdown.

Bitcoin dropped to approximately $107,000, pressured by the Federal Reserve’s cautious stance on future interest rate cuts.

The data vacuum from the government shutdown and the Fed’s monetary policy uncertainty significantly lowered expectations for a December rate cut, impacting investor sentiment across traditional and cryptocurrency markets.

The Story So Far

The recent decline in U.S. equity markets and Bitcoin’s price is largely attributable to the reopening of the U.S. government after a 43-day shutdown, which created a significant data vacuum by delaying crucial economic reports and leaving markets “flying blind.” This uncertainty was compounded by the Federal Reserve’s cautious stance on future interest rate cuts, as Chair Jerome Powell indicated that another December cut was not guaranteed, leading to a dramatic shift in market expectations for monetary policy.

Why This Matters

The recent U.S. government shutdown created a critical data vacuum, leaving markets “flying blind” and significantly reducing expectations for a Federal Reserve interest rate cut in December, which contributed to a broad decline in U.S. equity markets, especially in the tech sector. This uncertainty, alongside the Fed’s cautious stance, also pressured Bitcoin and raised concerns about a potential trimming of U.S. GDP, indicating continued volatility across both traditional and cryptocurrency markets.

Who Thinks What?

Market analysts and investors believe the U.S. government’s reopening after a shutdown, coupled with a data blackout on crucial economic reports, has created significant uncertainty, causing major U.S. stock indices to decline and complicating expectations for the Federal Reserve’s December meeting.

Federal Reserve Chair Jerome Powell, despite reducing rates and signaling an end to quantitative tightening, emphasized that a further December rate cut was not guaranteed, contributing to dampened market optimism and pressure on asset prices.

Bitcoin analysts and investors attribute the cryptocurrency’s struggle and potential for further decline to the Federal Reserve’s cautious tone on future rate cuts, a pullback from institutional investors, and reduced U.S. retail buying interest.

U.S. equity markets experienced a broad decline on November 12, 2025, with the Nasdaq 100 sinking nearly 2%, as the reopening of the U.S. government introduced fresh uncertainty due to missing economic data. Concurrently, Bitcoin dropped to around $107,000, pressured by the Federal Reserve’s cautious stance on future interest rate cuts.

U.S. Stock Market Declines Amid Data Blackout

Major U.S. indices saw significant drops, with the Nasdaq Composite falling 1.75% to 22,997.79. The S&P 500 slipped 1.09% to 6,776.03, while the Dow Jones Industrial Average decreased 0.79% to 47,873.64. The Small Cap 2000 also fell sharply, down 1.60% to 2,411.50.

The tech sector bore the brunt of the sell-off. Disney’s shares plunged 9% following weak revenue figures. Other prominent tech companies, including Nvidia, Tesla, Alphabet, Broadcom, and Arm, also experienced substantial declines, contributing to the Nasdaq’s underperformance.

The market’s mood was largely driven by the reopening of the U.S. government after a 43-day shutdown. This shutdown delayed the release of crucial inflation and jobs data, with the White House warning that some reports might never be published. This data vacuum left markets “flying blind,” complicating expectations for the Federal Reserve’s December meeting.

Expectations for a December rate cut shifted dramatically, falling from 95% a month prior to nearly 50-50. Rising Treasury yields further pressured high-growth tech stocks. Analysts, citing the Congressional Budget Office, warned that the government shutdown could trim U.S. GDP by approximately $11 billion by 2026.

Amid the broader market weakness, Cisco Systems emerged as a bright spot, gaining more than 4%. The company reported strong demand related to artificial intelligence and provided upbeat guidance. However, heavy losses in megacap tech names overshadowed these gains, pulling the broader market lower.

Bitcoin Under Pressure

Bitcoin’s price struggled, dropping to approximately $107,000, and analysts warned of a potential fall to $88,000 if market sentiment does not improve. This decline was largely attributed to the Federal Reserve’s cautious tone following its latest interest rate decision.

While the Fed reduced rates and signaled an end to quantitative tightening by December, Fed Chair Jerome Powell’s emphasis that another December cut was not guaranteed dampened market optimism. Data from the CME FedWatch Tool showed the odds of a December rate cut dropping significantly from 90% to 63%.

Adding to the unease, the Crypto Fear and Greed Index remained in the “fear” zone. Institutional investors also pulled back, with nearly $800 million withdrawn from Bitcoin and Ethereum ETFs last week. Long-term Bitcoin holders sold over 100,000 BTC in October, a month typically known for strong crypto performance, marking a rare setback with a 3.7% decline.

Global economic tensions, including trade disputes between the U.S. and China, along with uncertainty surrounding oil prices and geopolitical risks, have driven many investors toward safer assets like the U.S. dollar and gold. A negative Bitcoin price premium on Coinbase, observed in late October and early November, further signaled reduced U.S. retail buying interest and increased selling pressure.

Analysts are closely watching the $113,000 resistance level for Bitcoin, noting that a sustained break below it could trigger further declines towards $88,000. Conversely, holding above $113,000 could invalidate the bearish outlook. Traders anticipate continued volatility in both traditional and cryptocurrency markets as they navigate ongoing economic uncertainties and shifting monetary policy expectations.