Tech stock selloff weighs on crypto as Bitcoin drops below $84,000
The cryptocurrency market is once again experiencing volatility amid a selloff in the stock market. Bitcoin, the flagship cryptocurrency, has dropped below the $84,000 mark, losing around 10% in the last 24 hours. The overall crypto market capitalization has also fallen below $3 trillion.
The main driver behind the current crypto decline is the sell-off in shares of high-tech companies. Investors are shedding risky assets amid rising U.S. Treasury yields and expectations of an imminent interest rate hike by the Federal Reserve. This has triggered a massive correction in the cryptocurrency market, with over $1 billion in liquidations.
This correlation between cryptocurrencies and the stock market dynamics confirms that most investors still view digital assets primarily as a high-risk speculative instrument, rather than as a standalone asset class with low correlation to other markets. However, the long-term fundamental factors driving the crypto industry, such as institutional adoption, the rise of DeFi and NFTs, remain positive.