Bitcoin’s (BTC) price briefly dipped below $80,000 U.S. on Oct. 16 as market volatility worsens and investors rotate money out of technology stocks.
The largest cryptocurrency by market capitalization has been under pressure over the past week as concerns about the artificial intelligence (A.I.) trade worsen.
Bitcoin and other cryptocurrencies have had to contend with rising crude oil prices and yields on government bonds that have pressured risk assets in recent weeks.
But over the past five days, digital assets have also come under pressure as investors rotate capital out of technology stocks tied to the A.I. infrastructure buildout.
In Asia, South Korea’s main KOSPI stock exchange suffered a mini crash this week, falling 6% in a single day, as Asian chip stocks plunged.
Bitcoin’s drop below $80,000 U.S. lasted only two hours, with the leading cryptocurrency’s price falling to $79,800 U.S. before quickly rebounding.
Bitcoin was trading at just under $82,000 U.S. in premarket trading on Oct. 16. Cryptocurrencies trade around the clock: 24 hours a day, seven days a week.
Many analysts expect market volatility to persist in coming weeks as geopolitical risks mount, including the ongoing Iran war and upcoming U.S. midterm congressional elections.
Over the past trading week, Bitcoin has declined 2%, bringing its loss for the month of October to 5%.
