Bitcoin fell below $64,000 Thursday morning as tech stocks continued to decline. The flagship cryptocurrency was trading around $63,240 in mid-morning, with a drop of over 2.5%.
The price decline comes a week after the halving phase of Bitcoin, which split the reward for miners from 3.125 Bitcoin to 6.25. The top cryptocurrency was celebrating the post-halving phase earlier this week. Now, the crypto has lost nearly 10% of its value in a month.
The decline in Bitcoin’s price is mainly due to losses in major U.S. technology stocks, which were triggered by weak earnings reports from Meta and IBM. In the morning, Meta’s shares lost over 12%, while IBM’s fell more than 8%. Microsoft and Google parent company Alphabet are expected to release their earnings reports after Thursday’s market close. Their shares were down 4.4% and 2.5%, respectively, in mid-morning.
It is common for Bitcoin to follow the movement of U.S. tech stocks as both are seen as high-return investments and are associated with the development of future technologies. Moreover, Bitcoin and blockchain technology have become more mainstream due to the involvement of big companies such as BlackRock, as well as the launch of spot Bitcoin ETFs.
The bearish sentiment spread across the crypto market after Bitcoin’s price dropped, resulting in the global crypto market cap dropping by 2.16% to $2.35 trillion. Ether, the second-largest cryptocurrency by market capitalization, was down by 2.6%, hovering around $3,100. Solana shed nearly 6%, trading around $145 in mid-morning. Top meme-coin Dogecoin lost 3.5% in its value, trading at $0.14, according to CoinMarketCap.
