Bitcoin, the world’s main cryptocurrency, reached its lowest value in 20 months, pressured by the intense wave of sales affecting the shares of technology companies. The decline highlights a phase of turbulence in digital asset markets.
The value of the digital asset plummeted to less than US$60,000 (equivalent to R$312,000 at current prices), a level that is traditionally seen by investors as relevant support over the last two years. Last Wednesday (24), the cryptocurrency fell by up to 5.4%, reaching US$59,023.11 (R$307,097.01), which represents the lowest price recorded since October 2024.
Cryptocurrency drops below US$60,000 as investors focus on artificial intelligence
This sharp devaluation comes shortly after a significant liquidation of shares from large technology companies throughout this week. The scenario is worsened by growing projections of rising interest rates in the United States, measures aimed at containing inflation.
Increases in interest rates tend to reduce appetite for risky investments, leading investors to reevaluate assets with high valuations and look for alternatives considered safer. This risk aversion movement directly impacts markets such as cryptocurrencies and growth stocks.
Volatility persisted on Wall Street on Wednesday: the S&P 500 index registered a drop of 0.10%, the Nasdaq fell 0.43%, while the Dow Jones showed a slight increase of 0.35%. Stock markets in Asia also operated unstable, and shares of chip manufacturers such as Samsung Electronics and SK Hynix felt the pressure of investors’ caution towards assets with more stretched valuations.
Historically in recent years, the performance of cryptocurrencies has closely tracked that of technology stocks, but this recent correlation shows signs of weakening. Tokens such as bitcoin and solana have accumulated significant losses of 32% and 47% this year, respectively, without showing the same recovery capacity seen in some segments of the stock market.
The change in dynamics can be partially attributed to the reduction in demand from retail investors for crypto assets. These traders, instead of focusing on digital currencies, have turned to the stock market, seeking to capitalize on the high volatility generated by intense bets on sectors linked to artificial intelligence.
Gerry O’Shea, head of global market insights at Hashdex, a crypto asset manager, noted that “sentiment remains weak as notable public offerings and AI stocks take center stage.”
Market analysts do not foresee a significant catalyst capable of reversing the current trajectory of the crypto market in the short term. North American capital markets continue to absorb the repercussions of the largest global public offering, led by SpaceX, which made its debut on the Nasdaq at the beginning of the month.
Elon Musk’s AI and rocket company SpaceX is one of the first major IPOs in an expected series in the sector, with names such as OpenAI and Anthropic also planning their offerings soon.
At the same time, an important legislative proposal for the regulation of digital assets in the United States is stalled in the Senate. The so-called Clarity Act faces strong opposition from banking institutions and has so far failed to garner enough bipartisan support to pass, adding uncertainty to the regulatory landscape for cryptocurrencies.