Cryptocurrencies witnessed a sharp reversal of earlier gains during the U.S. trading session on Wednesday, with Bitcoin (BTC) dipping beneath the $64,000 mark. This decline was influenced by a broader sell-off in the equity markets, which exerted pressure on the digital asset sector.

The premier cryptocurrency by market capitalization plummeted by 2% within an hour, reaching a low of $63,890 after trading above $66,000 earlier in the session. As of publishing, BTC was hovering around $64,000, reflecting a 0.5% decrease over the past 24 hours.

Major altcoins such as Solana (SOL), Cardano (ADA), and Chainlink (LINK) experienced losses of 2%-4% during the same period. The broad-market crypto benchmark, CoinDesk 20 Index (CD20), also saw a decline of 1.2% over the past 24 hours, with most constituents registering losses.

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This downturn coincided with significant sell-offs in key U.S. equity indexes. The tech-heavy Nasdaq plunged by 2.7%, while the S&P 500 fell by 1.3%. Tech mega-cap stocks, including chipmaker Nvidia (NVDA), which had significantly contributed to the benchmarks’ march to new all-time highs, have struggled in recent days as investors shifted capital towards smaller cap stocks in anticipation of more accommodating interest rates later this year. Nvidia dropped by 6.5% on Wednesday but remains up by 145% year-to-date.

Joel Kruger, a market strategist at LMAX Group, indicated that the crypto rally might falter if the stock market sell-off escalates into a deeper correction. However, he also noted that, over a longer timeframe, cryptocurrencies could serve as a safe haven for investors fleeing equities.

“The one concern we’ve been highlighting recently is the fragility of the U.S. equities market and the potential for a significant bearish reversal to facilitate a healthy correction,” Kruger stated in a Wednesday note. “Nevertheless, even in such a scenario, there will be ample reasons to consider buying Bitcoin as a flight-to-safety asset, and substantial incentives to invest in other crypto assets during dips due to their potential for massive innovation,” he added.