Bitcoin Dips Below $71K Amid Global Tech Selloff

Bitcoin Experiences Sharp 8% Decline

Bitcoin's value fell sharply on Thursday, dropping nearly 8% to trade at levels near $70,000. The leading cryptocurrency was last recorded at $70,427.1, down 7.6%, marking a significant downward pressure on the digital asset.

The price plunged to a session low of $70,129.6 earlier in the day.

Global Tech Selloff Pressures Risk Assets

The price drop is linked to a broader sell-off in global technology stocks, which has increased pressure on risk-sensitive assets. Thinning market liquidity is also a contributing factor, creating a challenging environment for cryptocurrencies and other high-growth investments.

Sustained Downtrend for Cryptocurrency

This recent plunge extends a sustained downtrend for the digital currency. Bitcoin has now declined in seven of the last eight trading sessions. The cryptocurrency has fallen over 40% from its record high of nearly $126,000, a peak reached in October.

Outlook and Key Factors

Market participants are closely monitoring the technology sector and overall risk sentiment. Future price movements for Bitcoin will likely depend on broader macroeconomic stability and renewed investor confidence in risk assets.

FAQ

Q: Why did Bitcoin's price drop recently?
A: The price drop is primarily attributed to a broad sell-off in global tech stocks and thinning market liquidity, which negatively impacted risk assets like Bitcoin.

Q: How much has Bitcoin fallen from its peak?
A: Bitcoin has declined over 40% from its record peak of nearly $126,000, which was set in October.

Source: Investing.com