Bitcoin (BTC) is trading lower as U.S. technology stocks tumble and geopolitical tensions escalate in the Middle East. Concerns over artificial intelligence spending are weighing on U.S. equities and spilling over into the cryptocurrency market.
As of 8 a.m. on the 23rd, bitcoin changed hands at $81,258, down 3.83% from 24 hours earlier, according to CoinMarketCap, a global cryptocurrency data site. Ethereum (ETH) fell 4.14% to $2,382, while Binance Coin (BNB) declined 2.37% to around $730. XRP traded at $1.30 and Solana (SOL) at $103.
The domestic market followed a similar path. At the same time on Bithumb, bitcoin traded at 109.03 million won, down 2.97% from 24 hours earlier, and ETH slipped 3.24% to 3.19 million won. XRP fell 3.79% to 1,752 won and SOL dropped 3.89% to 138,500 won.
Bitcoin's weakness is attributed to selling pressure that spread from U.S. technology stocks. A flight from risk assets has carried over into the cryptocurrency market. On the 22nd, the tech-heavy Nasdaq Composite closed at 26,008.86 in New York, down 2.60% from the previous session. The Standard & Poor's 500 index also fell 1.21% to 7,663.43.
In U.S. markets, the burden of AI spending at large technology companies came into focus. Meta shares plunged about 7% on concerns over deteriorating cash flow from massive AI investments, despite third-quarter revenue that beat market estimates. Rising oil prices, driven by the possibility of U.S. and Israeli strikes on Iran, added pressure on investor sentiment. The yield on the 10-year U.S. Treasury note closed at 4.952%, down 0.193 percentage points from the previous session, the largest single-day drop since the U.S. regional banking crisis in March 2023.
In the cryptocurrency market, bitcoin is expected to move within a limited range until the U.S. Federal Open Market Committee (FOMC) meeting later this month. Bitfinex Alpha, the research arm of cryptocurrency exchange Bitfinex, forecast that bitcoin would trade between $81,300 and $84,400 through the 28th.
Bitfinex Alpha said bitcoin could break above $84,400 if inflows into spot bitcoin exchange-traded funds (ETFs) continue and leverage indicators remain stable. On the other hand, it said that if macroeconomic conditions worsen and prices close below $81,300, bitcoin risks falling to $79,821, the low recorded on the 15th.
Investor sentiment remains in "greed" territory. The Fear and Greed Index compiled by cryptocurrency data provider Alternative.me stood at 68, up 5 points from 63 the previous day. A reading closer to zero indicates contracting sentiment, while a reading closer to 100 signals an overheated market.
