Bitcoin fell sharply as major US stock indexes fell. Bitcoin is closely correlated with the price movement of the Nasdaq index.
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Bitcoin It fell as much as 6% early Friday and hovered just above a key support level of $80,000 as investors continued to flee risk-on assets to more defensive strategies.
The largest cryptocurrency by market cap reached $80,548 around 7:30 a.m. ET. The token’s plunge to its price – its lowest since April 11 – marks a further acceleration of Bitcoin’s decline following a widespread chain liquidation of highly leveraged crypto positions in October.
“Price trends across large tokens have been unimpressive, with BTC falling below its year-to-date price as long-term and large token holders have become more active,” Citi analyst Alex Saunders said in a note to clients on Friday. “ETF flows, the main driver of BTC prices, are also drying up, further raising concerns about short-term performance.”
Bitcoin has since recouped some of its losses, dropping 4% to trade at $82,939.59, according to Coin Metrics. The cryptocurrency has fallen 12% since the beginning of the week and has fallen about 26% in the past month.
Bitcoin value since the beginning of the year
The token decline comes as pressure on the U.S. stock market increases, leading investors to move away from volatile assets such as cryptocurrencies and artificial intelligence stocks to safer assets such as gold. On Thursday, the Nasdaq Composite Index fell 2%. NvidiaWednesday’s blockbuster earnings lost momentum. The sheer momentum highlights the growing scrutiny investors are placing on AI’s extremely high valuations. Investors in AI often also hold Bitcoin, linking transactions between the two.
Cryptocurrency stocks were also in the red. strategya Bitcoin treasury company, is down 2% on the day and is now down 42% over the past month. american bitcoin and riot platform They fell 7% and 4%, respectively, in Thursday’s session.
Despite breaking several price records after President Donald Trump took office in January, Bitcoin is currently down 9% since the beginning of the year.
Amid the administration’s policy to promote cryptocurrencies, the price last rose to a record high of just over $126,000 in early October. However, it is now down more than 30% from that high.
“Right now, Bitcoin is in very oversold territory,” Sebastian Pedro Baer, chief investment officer at crypto asset management firm ReserveOne, told CNBC.
