Bitcoin and Tech selloff paints crypto markets bloody red

A few comments from key CEOs, a market tense because of numerous “AI bubble” narratives, a wavering Federal Reserve and enough geopolitical circumstances to cause panic triggered a two-day selloff in Bitcoin and tech stocks.

The US tech exchange Nasdaq opened sharply in the red (and recovered towards the close thanks to investors’ “buying the dip”) while Bitcoin continues to fall. What happens next?

Shutdown

Investor relief at the end of the US shutdown has quickly given way to concerns about the sky-high valuations of tech companies (especially in the AI space) and concern whether the Federal Reserve will ease its rate cuts. While expectations last week were 70/30 that the Federal Reserve would cut interest rates again in December, that has since waned to 50/50.

The Nasdaq and crypto markets, in particular, took it badly. Much will depend on Nvidia’s all-important earnings release next week. It will be crucial to see how investors react to those figures. If excellent earnings are received mixed, it could be a red flag for Big Tech, triggering a further market decline.

7%

Bitcoin, which traded above $100,000 for most of the year, tumbled by around 7%, trading at its lowest point of the day at $94,000

At the time of writing, Bitcoin is already listed at $95,700.