Tech
Bitcoin Falls as Tech Stocks Fall
Photo: Dado Ruvic (Reuters)
Bitcoin fell below $64,000 on Thursday morning as tech stocks continued to fall. As of mid-morning, the flagship cryptocurrency was trading around $63,240, down more than 2.5%.
Why Bitcoin and Ether are skyrocketing
The price drop comes a week later Bitcoin’s halving phase, which split the reward for miners from 3,125 Bitcoin to 6.25. The top the cryptocurrency was celebrating the post-halving phase earlier this week. Now the the cryptocurrency has lost almost 10% of its value in a month.
The decline in Bitcoin’s price was mainly due to losses in major US technology stocks, triggered by weak earnings reports from Meta and IBM. The morning, Meta shares lose more than 12%While IBM fell more than 8%. Microsoft and Google parent Alphabet are expected to release their earnings reports after the market closes on Thursday. By mid-morning their shares were down 4.4% and 2.5% respectively.
It is common for Bitcoin to follow the movement of US technology stocks as both are seen as high-yield investments and are associated with the development of future technologies. Additionally, Bitcoin and blockchain technology have become more widespread due to the involvement of large companies such as BlackRockas well as the launch of spot ETF on Bitcoin.
Bearish sentiment spread to the cryptocurrency market after the price of Bitcoin fell, resulting in The global cryptocurrency market capitalization fell 2.16% to $2.35 trillion. Ether, the second-largest cryptocurrency by market capitalization, fell 2.6% to around $3,100. Solana lost nearly 6%, trading around $145 by mid-morning. Leading meme coin Dogecoin lost 3.5% of its value, trading at $0.14. according to CoinMarketCap.