Bitcoin below $63,000 : The tech crash shakes crypto

Bitcoin has fallen below 63,000 dollars, driven by a massive sell-off in technology stocks. This decline confirms that the leading crypto remains closely linked to risky assets, despite the drop in oil and the partial easing of geopolitical tensions.

Bitcoin falls following the Nasdaq

Bitcoin slipped below 63,000 dollars after briefly exceeding 65,000 dollars on Monday. This move accompanies a new correction in technology markets. It recalls a previous episode where fears related to AI had already made both Nasdaq and crypto plunge simultaneously.

The Nasdaq 100 came under strong pressure, while semiconductor manufacturers and several large tech companies retreated. Nvidia and Alphabet lost ground. Intel, AMD, and Marvell recorded even sharper declines.

Bitcoin followed this trend. It was trading around 63,600 dollars early in the session, down for the day and the week. Its brief dip below 63,000 dollars shows that sellers maintain control whenever risk aversion returns.

Concerns about AI contaminate crypto

The decline in technology stocks is not due to a sudden collapse in their activities. Investors are more questioning the huge cost of the infrastructure necessary for artificial intelligence.

Large companies borrow and spend considerable sums to build data centers, buy chips, and power their models. This race is beginning to raise questions about future profitability and the weight of debt.

When investors reduce their exposure to tech stocks, they often also sell bitcoin. Both markets attract some of the same speculative capital and react to the same liquidity conditions.

This correlation weakens the narrative of bitcoin as a fully independent asset. In the short term, crypto behaves more like a highly volatile tech stock than as a safe haven. This proximity to the Nasdaq had already been observed during previous bitcoin corrections.

The Fed weighs more than oil

The drop in oil would normally have supported risky assets. Cheaper barrels reduce inflationary pressures and lower costs for companies. Yet this positive effect was insufficient to reassure markets.

Investors focus more on the Federal Reserve. The market fears a more restrictive monetary policy if inflation remains persistent. Expectations of a rate hike before the year-end have strengthened the dollar and pushed bond yields higher.

This context is unfavorable to bitcoin. High rates make bonds more attractive and reduce the amount of capital available for speculative assets. Investors also become less willing to hold risky positions without guaranteed returns.

Bitcoin therefore remains caught between two forces. The fall in oil provides it macroeconomic support. But the Fed, the dollar, and the tech correction exert more immediate pressure.

The $60,000 threshold for bitcoin returns to center stage

Bitcoin must now defend the zone between 62,000 and 63,000 dollars. Stabilizing at this level could keep the market within its recent range and prepare for a new test of 65,000 dollars.

A sharper break, however, would put the 60,000 dollar threshold back at the center of debate. Bitcoin had already fallen to around 59,100 dollars earlier this month before rebounding. This zone now represents a major psychological support.

The rest of the crypto market also remains under pressure. Ether dropped toward 1,650 dollars, while Solana, XRP, and Dogecoin followed the decline. Altcoins generally continue to amplify bitcoin’s moves when liquidity contracts.

The next direction will mainly depend on tech stocks, US economic data, and the Fed’s speech. As long as investors fear another monetary tightening, bitcoin will struggle to move sustainably away from 60,000 dollars. The recent dip to 59,100 dollars reminds that the market remains vulnerable to a new wave of sales.