Bitcoin dropped below $82,000 on Thursday as cryptocurrency markets tracked a sharp decline in US technology stocks, with weak earnings and rising geopolitical tensions reducing investors’ appetite for risk.
The world’s largest cryptocurrency was down 3.4% over 24 hours, trading at $81,387 at 9:30 p.m. ET on Thursday, according to The Block’s bitcoin price page. The wider crypto market fell 3%.
Ethereum declined 3.5% to $2,388, while XRP lost 3.8%. Zcash recorded a sharper fall of 7.7%.
The downturn triggered $440.9 million in crypto liquidations during the same 24-hour period, including $397 million from long positions, according to CoinGlass data.
The move lower came after a heavy sell-off in US equities. The Nasdaq Composite fell 2.6% on Thursday, its worst performance since June, according to CNBC. The S&P 500 also recorded its weakest day since July, dropping 1.21%.
Technology shares were particularly affected as investors continued to question the scale of spending on artificial intelligence. Meta Platforms fell 6.98%, Micron Technology declined 6.26% and Nvidia lost 4.4%. Advanced Micro Devices dropped 8.1%.
The pressure spread into Asian markets on Friday. South Korea’s Kospi was down 2.3% in morning trading, while Japan’s Nikkei 225 fell 1.6%.
Investors adopt a more cautious approach
“Crypto is under macro pressure as weak tech earnings, escalating geopolitical tensions and continued U.S.-Iran disputes weigh on risk appetite,” Dominick John, an analyst at Zeus Research, told The Block.
John said uncertainty about technology valuations and AI investment, alongside wider concerns about global economic growth, was encouraging investors to take a more defensive position.
Rick Maeda, head of markets at Laevitas, described crypto as “trading as a high-beta tech position” after the Nasdaq’s fall on Thursday. “The main driver was AI financing, in particular in regards to Meta,” Maeda added.
Dan Khus, chief analyst at LVRG Research, said traders were assessing whether $80,000 would provide support for Bitcoin.
“Traders are now watching whether $80,000 holds as support, the persistence of ETF flows, and any further equity or oil volatility that could extend the pullback,” Khus said.
Investors were also awaiting Friday’s S&P Global Flash U.S. Manufacturing PMI, according to Zeus analyst John. The data “could influence growth expectations and rate-cut sentiment”, he added.
