Bitcoin once fell to a new low since October 2024 as the crypto market was under increased pressure from the sell-off in tech stocks

Comparative news, according to the Financial Times, Bitcoin fell to a 20-month low due to the intensification of the sell-off in technology stocks, and market risk sentiment continued to weaken. Bitcoin once fell below $60,000, with an intraday decline of up to 5.4%, the lowest level since October 2024. Traders have viewed $60,000 as an important support level for the past two years. This round of decline comes after major tech stocks were sold off this week. Traders are betting that the Bank of America will respond to inflation by raising interest rates. Higher interest rates may suppress risk appetite, prompting investors to reevaluate overvalued assets and shift to relatively safe assets.

In recent years, crypto assets have been highly correlated with stock trends, but this relationship is currently under pressure. Bitcoin and Solana are down 32% and 47%, respectively, this year, and even the stock market's rebound has failed to recover significantly. This is partly due to declining demand for cryptocurrencies from retail investors to chase AI-related stock fluctuations. Gerry O'Shea, head of global market insight at crypto asset management firm Hashdex, said market sentiment remains weak as large-scale public offerings and AI stocks take center stage.

Analysts currently don't see a significant catalytic factor in the crypto market. The US capital market is still digesting SpaceX's largest IPO in the world, which was listed on NASDAQ earlier this month, and AI companies such as OpenAI and Anthropic are expected to follow suit. Meanwhile, the “Clarity Act”, an important US digital asset regulation bill, is still at a standstill in the Senate. The bill faces strong opposition from the banking industry and has not received sufficient bipartisan support.