Bitcoin fell sharply as major US stock indexes fell. Bitcoin is closely correlated with the price movement of the Nasdaq index.
Luke McGregor Bloomberg | Getty Images
Bitcoin fell as much as 6% early Friday, at one point hovering just above a key support level of $80,000, as investors continued to flee risk-on assets to more defensive strategies.
The largest cryptocurrency by market cap hit $80,548 around 7:30 a.m. ET, its lowest level since April 11.
It has since recouped some of its losses, trading 1.5% lower at $85,104.38, according to Coin Metrics. The cryptocurrency has fallen about 10% since the beginning of the week and has fallen about 24% in the last month.
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Bitcoin value since the beginning of the year
The token’s decline comes in the wake of growing pressure on the US stock market, with investors shifting away from volatile assets such as cryptocurrencies and artificial intelligence stocks and toward safer assets such as gold. The Nasdaq Composite Index fell 2% on Thursday, as the rally sparked by Nvidia’s blockbuster earnings on Wednesday ran out of steam. The sheer momentum highlights the growing scrutiny investors are placing on AI’s extremely high valuations. Investors in AI often also hold Bitcoin, linking transactions between the two.
Despite breaking several price records after President Donald Trump took office in January, Bitcoin is currently down 9% since the beginning of the year. Under the administration’s policy to promote cryptocurrencies, the price last rose to a record high of just over $126,000 in early October.
