Bitcoin Price slides Further, Drops Below $85,000 Amid Tech Sector concerns
Bitcoin’s price continued its downward trend, falling below $85,000 as broader anxieties about risk appetite ripple through the technology sector.The cryptocurrency’s recent performance is increasingly correlated with U.S. tech stocks,signaling a potential sensitivity to macroeconomic factors and investor sentiment.
The decline comes as investors await a key decision from the Federal Reserve next week. While markets widely anticipate another reduction in benchmark interest rates-currently priced in at an 87% probability, according to CME FedWatch-concerns linger that accompanying forward guidance could temper enthusiasm for risk assets. This interconnectedness highlights a shift in Bitcoin’s role, increasingly viewed as a leading indicator for broader market trends, particularly within the technology space.
Nigel Green, CEO of deVere Group, observed the mirroring effect, noting a near 30% drop in Bitcoin’s value coinciding with a 4% pullback in the Nasdaq Composite. “Bitcoin has increasingly behaved as a leading indicator for broader risk assets, particularly U.S. technology stocks,” Green stated.
Adam Crisafulli, head of Vital Knowledge, cautioned that the Fed‘s decision isn’t isolated. “There’s a lot of moving pieces beyond just the actual policy decision,” he said, suggesting that the central bank’s outlook will be crucial.
Despite the current downturn, some analysts remain optimistic. Eric Schiffer, CEO of the Patriarch Organization, anticipates a rebound in the new year as the Federal Reserve continues to ease monetary policy. “All of this is short-term,” he predicted.
Alain Sherter of CBS News edited this report. The Associated Press contributed to this report.
