Bitcoin's surge towards a record high stumbled in premarket trading on Tuesday, falling 1.3% to under $67,000 shortly before 5:30 a.m. ET. The leading cryptocurrency had been inching closer to its all-time peak in recent days, fueled by the approval of 11 spot ETFs by the Securities and Exchange Commission and growing anticipation surrounding an upcoming "halving" event.

Meanwhile, US stock futures, including those for the S&P 500, Nasdaq 100, and Dow Jones Industrial Average, dipped as investors scrutinized China's underwhelming growth targets and eagerly awaited the testimony of Federal Reserve Chair Jerome Powell. Powell is set to appear before the House Financial Services Committee on Wednesday, and investors are hanging on his words for indications of the central bank's stance on interest rates.

The market has been closely monitoring Powell's comments, as they could provide valuable insights into the direction of future interest rates. Despite the central bank's aggressive tightening campaign last year, inflation has remained above policymakers' 2% target. Investors are eager to gauge whether the Fed will continue its efforts to curb inflation or adopt a more accommodative approach to support economic growth.

The impact of Powell's upcoming testimony on investor sentiment was palpable, as Hong Kong's Hang Seng closed the trading session 2.6% lower amid reactions to his comments. Traders are now keeping a close eye on Powell's appearance before the House Financial Services Committee, as his remarks carry the potential to significantly influence market trends and investor decisions.

With Bitcoin's rally momentarily halted and US stock futures dipping, market participants are anxiously waiting for further clarity on the Federal Reserve's plans. Powell's testimony holds the key to understanding how the central bank intends to address inflation concerns while supporting economic recovery in the face of challenging global conditions.

As the day unfolds, investors will be closely monitoring market developments and Powell's testimony, seeking guidance amid economic uncertainties.