Bitcoin risks worst October in 12 years as tech sell-off spreads to gold
Bitcoin circled $77,000 as crypto markets navigated US stock-market downside, while the gold price fell to its lowest in a year.
Bitcoin hovered around $77,000 as the crypto markets navigated a downward trend in US stock markets, while the price of gold slipped to its lowest level in a year. Bitcoin (BTC) struggled to stay above $80,000 at the beginning of the trading week on Wall Street, as concerns about artificial intelligence resurfaced, further intensifying an overall decline in risk assets.
TradingView's data revealed that BTC/USD fell by 1.1% for the day after reaching its lowest point since September 18. The one-hour chart of BTC/USD is available on Cointelegraph/TradingView.
As US stock markets opened significantly lower due to weak forward guidance from major tech companies, Intel's stock price plummeted by nearly 30% during Friday's trading session. This sell-off affected both tech giants and chipmakers, raising concerns over the future of AI-sector confidence. JPMorgan analysts warned of ongoing equity rotation, which could continue as broader indices reflect the tech sector's decline.
According to CNBC, the Nasdaq Composite Index dropped by 2.5% to around 25,500, a level last observed on August 3.
The impact of the tech sell-off extended beyond the stock market, touching precious metals like gold, which plummeted to $3,891 per ounce, marking its weakest point in a year. The one-week chart of XAU/USD is also available on Cointelegraph/TradingView. Despite the Binance, the largest cryptocurrency exchange, handling a multi-million-dollar hack, it stated that it would cover the losses using its own capital. Binance mentioned having $5 billion in matching tokens available for the insured losses.
Commenting on the future outlook for cryptocurrencies, trading firm QCP Capital expressed that macro conditions, tech-sector uncertainties, and the Binance hack have "created a period of heightened market repricing." The firm emphasized that technology sector earnings guidance regarding future capital expenditure will remain a crucial factor in understanding the pace of artificial intelligence infrastructure investment and expected profitability.
As of now, with Bitcoin trading at $77,000, the cryptocurrency has closed the month 7.7% lower, marking its worst October performance since 2014, based on CoinGlass data.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
