Cryptocurrency prices are retreating on July 6 to begin the trading week after staging a rally at the start of the third quarter.
In early trading, Bitcoin’s (BTC) price is down 1.25% to $61,931 U.S., while Ethereum has fallen 2% in the past 24 hours to trade at $1,745 U.S.
Other digital assets such as Dogecoin (DOGE), XRP (XRP), and Solana (SOL) are also in the red after staging a recovery in recent days.
The renewed decline in cryptocurrencies comes as investors pile back into technology stocks, with the Nasdaq Composite index up 350 points or 1.20% on July 6.
Investors had been rotating capital out of technology stocks tied to the artificial intelligence (A.I.) trade heading into the July 4th weekend in the U.S.
However, coming out of the American holiday, investors appear to be once again buying technology stocks at the expense of digital assets.
There had been some hope that Bitcoin bottomed at $58,000 U.S. at the end of June and that the “crypto winter” that began last October was nearing an end.
Now, investors and analysts appear less sure as prices for digital assets again sink. Despite several rallies in recent months, BTC has been unable to break resistance at $65,000 U.S.
Some analysts continue to warn about downside risks for crypto such as the potential for higher interest rates and lack of regulatory clarity in the U.S.
At the same time, investors appear unwilling to give up on the A.I. trade even after some semiconductor stocks such as Micron Technology (MU) have tripled this year.
Bitcoin’s price has been effectively cut in half from an all-time high of $126,000 U.S. reached last October.
