Bitcoin Price Drops Amid Tech Rout and Interest Rate Concerns
Bitcoin’s value plummeted on Thursday, as a sell-off in major U.S. technology stocks and concerns over rising interest rates cast a shadow over the cryptocurrency market. The rout, led by a weaker-than-expected revenue forecast from Facebook owner Meta Platforms, dragged down technology stocks and, by extension, Bitcoin. This renewed correlation between the sectors highlights the ongoing speculative nature of Bitcoin and its susceptibility to broader market sentiment.
The prospect of higher U.S. interest rates further weighed on Bitcoin and other cryptocurrencies. Fears that the Federal Reserve may continue to raise rates to combat inflation pressured most tokens. Investors are anxiously awaiting upcoming data prints, including gross domestic product data and PCE price index data, for further clues on the economy and the central bank’s plans for interest rates.
The renewed correlation between Bitcoin and tech stocks, combined with interest rate concerns, has dampened the cryptocurrency’s recent gains. Bitcoin had outperformed earlier this year, buoyed by the launch of spot exchange-traded funds, but has since fallen back within a trading range between $60,000 and $70,000. As earnings reports from tech giants Microsoft and Alphabet loom on the horizon, investors remain cautious, with the broader market outlook and interest rate trajectory likely to continue shaping Bitcoin’s price movement in the near term.
