Investors began selling off risky assets as the crypto market became highly volatile.
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Bitcoin, the world's most popular cryptocurrency, is currently under pressure. The price of Bitcoin, which reached a peak of $122,000 in October last year, has now fallen to around $60,000.
Despite recovering somewhat in recent days and reaching $66,000, the price of major cryptocurrencies, including Bitcoin, has continued to decline sharply this week.
CNN reported that such a decline is not surprising. As the crypto market is very volatile, investors have recently started selling off such risky assets. Along with the decline in the crypto market, the share prices of American and international software and technology companies have also fallen simultaneously. Various media outlets have reported that the combined decline of these two sectors has caused a loss of equity value worth about $1 trillion this week alone.
Bitcoin, which some call digital gold, has fallen by more than 15 percent in the last five days. Ethereum has also fallen by about 13 percent. According to CNN Business Bureau Editor David Goldman, the price of Bitcoin has fallen below $70,000 for the first time in 15 months.
‘For the first time since Donald Trump was re-elected as president last November, the price of Bitcoin has fallen below $70,000,’ he analyzes in the video, ‘Investors are worried about global geopolitical tensions. And, they are hesitant to invest in risky assets like Bitcoin.’ According to him, people are withdrawing their investments from certain stocks after the AI boom. Goldman believes that Bitcoin has been hit by this fear in the market.
Meanwhile, the share prices of large software companies have also reached their worst state in months amid growing concerns about artificial intelligence (AI)-related spending, revenue growth and valuation. Bitcoin, which rose for a long time last year and reached 124,000 on October 5, has lost a lot since then.
Its value has fallen by more than half in 4 months. Ethereum has also fallen rapidly in a similar way. The price of Ethereum has fallen from around $4,500 per Ethereum in October to around $1,900. According to market trackers, the total value of the global crypto market has fallen by more than $8 trillion in just one month.
Other heavily traded tokens such as Solana and XRP have also seen sharp declines. This has also put pressure on major crypto promoters and founders. In recent weeks, some prominent founders and large investors have reduced or sold their holdings, which has further increased market concerns. At the same time, shares of large technology and software companies have also come under intense pressure.
