Tech
Bitcoin Falls as Tech Stocks Fall
Photo: Dado Ruvic (Reuters)
Bitcoin fell below $64,000 on Thursday morning as tech stocks continued to slide. The flagship cryptocurrency was trading around $63,240 by mid-morning, down more than 2.5%.
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The price drop occurs a week later Bitcoin halving phasewhich 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 Cryptocurrencies have lost nearly 10% of their value in a month.
Bitcoin’s price decline was mainly due to losses in major US tech stocks, triggered by weak earnings reports from Meta and IBM. Earlier in the morning, Meta shares have lost more than 12%While IBM fell more than 8%Microsoft and Google parent Alphabet are scheduled to report earnings after the market closes on Thursday. Their shares were down 4.4% and 2.5%, respectively, by midmorning.
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 mainstream due to the involvement of large companies such as BlackRockas well as the Bitcoin Spot ETF Launch.
Bearish sentiment has spread across the cryptocurrency market following the drop in Bitcoin price, resulting in The global cryptocurrency market capitalization fell 2.16% to $2.35 trillion. Ether, the second-largest cryptocurrency by market cap, fell 2.6%, hovering 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.