Bitcoin witnessed a 3.8% decline over the past 24 hours, dipping to $64,198.0 by 01:15 ET (05:15 GMT) on Thursday, as a subdued risk appetite and a downturn in major U.S. technology stocks spilled over into the cryptocurrency markets.
The downward trend in Bitcoin prices coincided with a slump in key U.S. technology stocks, prompted by a disappointing revenue forecast from Meta Platforms Inc (NASDAQ:META), which led to a 15% slide in its shares during aftermarket trading. Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) also experienced declines of 2% and 3% respectively.
Bitcoin’s correlation with the technology sector, often attributed to their shared status as high-return, speculative investment opportunities, resurfaced in recent weeks after fading earlier in the year due to the hype surrounding the launch of spot exchange-traded funds (ETFs) in the U.S. However, with the waning excitement over ETFs and renewed pressure from the anticipation of prolonged higher U.S. interest rates, this correlation regained prominence.
Over the past month, Bitcoin has witnessed an 8% decrease, compared to a 4% drop in the tech-heavy Nasdaq 100 Futures index. Despite reaching record highs in early March, Bitcoin has remained within a trading range of $60,000 to $70,000.
Attention now turns to the earnings reports from tech giants Microsoft and Alphabet, scheduled for later on Thursday, which are expected to provide further insights into market sentiment.
Meanwhile, in the broader cryptocurrency market, altcoins experienced weakness as concerns over interest rate hikes persisted. Ethereum declined by 3.1% to $3,157.77, while Solana and XRP slid by 7.3% and 4.1% respectively.
Investors are also eagerly anticipating upcoming data releases that will shed light on the trajectory of the U.S. economy and its implications for interest rates. Gross domestic product (GDP) data, scheduled for release later on Thursday, will offer insights into the resilience of the U.S. economy in the first quarter. Additionally, all eyes will be on the Personal Consumption Expenditures (PCE) price index data, set to be unveiled on Friday, which serves as the Federal Reserve’s preferred inflation metric and will play a crucial role in shaping the central bank’s monetary policy decisions.
