"Bitcoin crashed to a six-month low this week, dipping to just above $96,000 by Friday morning. The cryptocurrency has slid from over over $140,000 last month, and fallen nearly eight percent over the last five days alone, showing that investors are now racing to liquidate their holdings. There are likely several factors at play. For one, economic uncertainty over possible changes to interest rates has already triggered a major tech selloff this month."
"A cut is usually met with increased liquidity and a higher willingness among traders to invest in more risky assets. As Fast Company points out, many tech stocks, including AI-adjacent ones, are also becoming far riskier bets as the gulf between company valuations and actual revenues continues to grow - an enormous bubble that tech leaders are now openly discussing in the media."
"Then there's president Donald Trump's continued embrace of crypto. The president has made billions of dollars from digital currency investments and has frequently been accused of using his office to manipulate the market for his own gain. Most recently, Trump's sons, Eric Trump and Donald Trump Jr., reported that their crypto mining operation, American Bitcoin, had doubled its profits in its last quarter, raking in over $64 million in revenue between the start of the year and the end of September."
Bitcoin crashed to a six-month low, dipping to just above $96,000 by Friday morning. The cryptocurrency slid from over $140,000 last month and fell nearly eight percent over five days, prompting investors to liquidate holdings. Economic uncertainty about potential interest-rate changes triggered a major tech selloff, and crypto has fallen alongside gold and stocks. Traders now give only a 50 percent chance of a Federal Reserve rate cut, reducing appetite for volatile assets. Many tech and AI-adjacent stocks face growing valuation-to-revenue gaps. Delayed government economic reports and political figures' crypto involvement further undermine market confidence.
Read at Futurism
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