This Thursday, the price of Bitcoin remained virtually unchanged, completely erasing the brief rally we saw overnight. Two factors weighed on risky assets: a massive sell-off of artificial intelligence stocks and the steadily rising price of oil.
As of 9:13 a.m. Moscow time, the leading cryptocurrency was trading at $82,785.8, although it had approached $85,000 overnight. After the strong growth seen in the third quarter virtually evaporated in October, Bitcoin continues to trade within a fairly narrow range that has held over the past month. There is currently uncertainty in the crypto market, as the overnight rally quickly ran out of steam.
Why did Bitcoin stop rising?
The overnight surge to nearly $85,000 was driven by a temporary influx of funds into spot ETFs. However, on Thursday, the cryptocurrency lost all its gains as investors grew cautious.
It all started with mixed financial reports from the largest tech giants. Following these reports, a wave of sell-offs began on Wall Street, spreading across the entire tech sector during Asian and European trading sessions. Investors grew concerned about the stability of AI-related stocks and fear that interest rates will remain high. This reduced risk appetite, which immediately affected the crypto market. Digital assets typically move in tandem with tech stocks, so as borrowing costs rise, they too come under pressure.
The situation is further exacerbated by oil. This week, oil prices reached a five-month high due to conflicts in the Middle East. The situation looks alarming due to news of a possible escalation between the U.S., Israel, and Iran. High fuel prices only reinforce the view that inflation isn’t going away and that interest rates could rise even further.
What’s happening with other cryptocurrencies?
On Thursday, the crypto market is experiencing a lull or a slight decline as the upward momentum has faded.
Ether, which ranks second by market capitalization, fell 0.3% to $2,432.48, while BNB lost 0.7%. XRP posted a slight gain of 0.6%, while Cardano and Solana fell by 2.5% and 1.3%, respectively. The meme coins TRUMP and Dogecoin are also in a slump: they fell by 0.8% and 2.3%.