Bitcoin drops 6.4% pulling crypto-related stocks down (Cryptocurrency:BTC-USD)

Bitcoin (BTC-USD) fell 6.4% in the morning pulling crypto related stocks down, a day after the U.S. manufacturing activity came in hotter than expected.The oldest cryptocurrency touched $65.4K on Tuesday at 9:35 am ET signaling a bearish sentiment, after a week of trading between $69K to $71K.The ISM Manufacturing PMI, which came in at 50.3 vs 48.3 expected, also pushed the dollar index (DXY) to its highest levels in five months.Usually, when the dollar gets stronger it negatively impacts dollar-denominated assets like BTC and gold, and make them more expensive, which leads to a fall in demand for the assets, according to an

article on CoinDesk.The manufacturing data also indicated that U.S. manufacturing activity expanded for the first time after contracting for 16 straight months igniting discussions on the outlook of interest rate cuts."We continue to expect the Fed to cut rates in June. We think this will support risk appetite in asset markets and lead to moderate USD weakness, even if other G10 central banks follow suit in cutting," said Standard Chartered.With BTC trading ~12% below its record high of $73.8K, traders could be in profit-taking mode ahead of the April halving. The event – which occurs about every four years – reduces the supply of new bitcoins entering the market, a move that could drive up the coin’s price should demand remain constant or rise.Crypto-related stocks are also trading lower, with Coinbase (COIN) -5.8%, Marathon Digital (MARA) -7.7%, Riot Platforms (RIOT) -7.7%, Hive (HIVE) -5.7% and MicroStrategy (MSTR) -10.3%.