From its peak last month till yesterday, bitcoin has fallen 26% to $93,000
The global market is losing confidence as more than $1 trillion has disappeared from the cryptocurrency world in just six weeks.
CoinGecko reports that the value of over 18,500 digital coins has dropped by 25% since early October.
From its peak last month till yesterday, bitcoin has fallen 26% to $93,000. Jittery investors are dumping riskier stocks like crypto. They are worried because they believe the tech and AI boom may be turning into a bubble, as companies, such as Nvidia and OpenAI, continue to spend big money on AI.
Donald Trump’s tariff threats on Chinese imports are also to blame.
Stock markets are also falling. The FTSE 100 dropped 1.3%, its worst day since April. Europe’s Stoxx 600 fell 1.8%, and major US indexes, including the Dow Jones, Nasdaq, and S&P 500, slipped about 1%.
Top industry leaders are sounding alarms. Alphabet’s Sundar Pichai warned that “no company” will escape damage if the AI bubble bursts. Executives at JP Morgan and Klarna also expect an AI valuation correction.
Meanwhile, gold prices are slipping as investors scale back expectations of a near-term US rate cut.