Bitcoin fell more than 2% against the dollar late Monday as traders increased expectations that the Federal Reserve could resume monetary tightening in July, then rebounded sharply after entering a statistically rare oversold zone relative to the Nasdaq. The decline reversed a quiet, low-volume weekend, pressured Ethereum and top-50 altcoins, and pushed S&P 500 futures lower ahead of Wednesday's U.S. Consumer Price Index report. Ethereum posted a similar loss, while leading altcoins fell 1.5% to 4%. Stronger-than-expected labor-market data and persistent services inflation shifted derivatives-market expectations from a likely pause toward a possible quarter-point rate increase. Bitcoin's sensitivity to real yields, dollar liquidity, interest-rate expectations and investor risk appetite has reinforced its correlation with the Nasdaq 100 when macroeconomic forces dominate. Real Vision co-founder and macro investor Raoul Pal said Bitcoin had recently traded more than two standard deviations below its historical mean relative to a basket of major technology stocks, a rare reading that has historically preceded strong rebounds. He cautioned that it is too early to draw definitive conclusions, that any recovery could take time, that further downside remains possible and that technical signals should not determine investment decisions alone. Bitcoin's relative underperformance also reflected its higher volatility, while artificial-intelligence enthusiasm and strong technology earnings could allow the Nasdaq to maintain its advantage. The selloff appeared driven by spot-market selling rather than a derivatives liquidation cascade, with perpetual-swap funding rates remaining neutral. Bitcoin had traded in a narrow range below resistance near $31,500, and the decline brought it closer to the range floor without triggering panic selling. Regulatory uncertainty increased as banks sought to derail a bipartisan cryptocurrency bill days before a Senate vote, raising doubts about legislative progress this year. Meanwhile, developer activity on Ethereum, BNB Chain and Solana remained strong, and institutional interest in real-world-asset tokenization passed critical thresholds, highlighted by agreements between Ondo Finance and JPMorgan. A softer CPI reading could reverse rate-hike bets and prompt a relief rally in stocks and crypto, while a hotter figure could reinforce a July increase and trigger broader risk repricing. Pal's longer-term view is that cryptocurrency's risk-reward may favor patient investors, although outcomes remain dependent on macroeconomic conditions, adoption and market risk.