Bitcoin continues slide that’s roiling markets, threatens to break below $80,000
Bitcoin fell sharply following a sell-off in major US stock indexes. Bitcoin is closely correlated with the price movement of the Nasdaq index.
Luke MacGregor | Bloomberg | Getty Images
bitcoin It fell as much as 6 percent early Friday, hovering just above the critical $80,000 support level at one point, as investors continued their flight from risky assets into more defensive plays.
The largest cryptocurrency by market cap reached $80,548 around 7:30 a.m. ET. The token’s decline to this price (its lowest level since April 11) signals that Bitcoin’s decline has steepened following widespread cascading liquidations of highly leveraged crypto positions in October.
“Price action across major tokens has been underwhelming; BTC has fallen below its year-start price as long-time and larger token holders become more active,” Citi analyst Alex Saunders wrote in a note to clients on Friday. he said. “ETF flows, which are the main driver of BTC prices, are also drying up, raising short-term performance concerns.”
Bitcoin has since clawed back some of its losses, falling 4% to $82,939.59, according to Coin Metrics. The cryptocurrency is down 12% since the beginning of the week and roughly 26% in the past month.
Bitcoin value year to date
The token’s decline follows increasing pressure on the US stock market, which has led investors to move away from volatile assets such as crypto and AI stocks towards safe havens such as gold. The Nasdaq Composite fell 2 percent on Thursday, fueled by a rally. NvidiaWednesday’s blockbuster earnings lost steam. His outburst underscores investors’ increasing scrutiny of sky-high AI valuations. AI investors also hold Bitcoin, often connecting the two trades.
Cryptocurrency stocks were also in the red. StrategyThe Bitcoin treasury company fell 2% on the day and is now down 42% over the past month. American Bitcoin And Riot Platforms They fell 7% and 4% respectively in Thursday’s session.
Although Bitcoin broke many price records after President Donald Trump took office in January, it has fallen 9% since the beginning of the year.
It last hit a record price just north of $126,000 in early October, amid the administration’s pro-crypto policies. But right now there is more than 30% off at this height.
“We are currently in oversold territory for Bitcoin,” Sebastian Pedro Bea, chief investment officer at crypto asset management firm ReserveOne, told CNBC.
