Bitcoin dropped to its lowest level in seven weeks as a broader sell-off in technology stocks weighed on riskier assets. The world's largest cryptocurrency fell below $76,000, briefly losing as much as 5.8% before recovering slightly. The decline mirrored a sharp 6.4% drop in the Nasdaq 100, driven by weak earnings forecasts and regulatory concerns in the artificial-intelligence sector.
The sell-off in Bitcoin came amid a broader risk-off mood, with investors pulling back from digital assets already facing industry-specific challenges. The Nasdaq 100's plunge was led by chipmakers, reflecting broader market anxieties about tighter oversight of the AI industry under Democratic control of Congress.
While Bitcoin managed to recover some of its losses, the broader market sentiment remained cautious. The cryptocurrency's decline underscored its sensitivity to broader market trends, particularly when technology stocks are under pressure.