Bitcoin Price Plunges Amid Rising Oil Costs and Tech Spending Fears

Bitcoin's price dropped to $63,018 on Monday, its lowest level in 11 days. The cryptocurrency fell by 2.9% during this period. In contrast, Ether declined by 4.1%, making it an underperformer compared to Bitcoin.

The market is attributing the decline in value to a combination of factors. Investors are pricing in the possibility of Federal Reserve rate hikes due to rising oil prices, which have surpassed $100 per barrel amid geopolitical tensions in the Middle East. Additionally, concerns about reduced AI and technology spending following Alphabet's recent earnings report have also contributed to the decline.

The correlation between crypto markets and tech stocks has been a defining feature of this market cycle. When AI spending fears hit tech stocks, Bitcoin drops. This phenomenon was observed on Monday as well. The key levels to watch are the $63,000 floor that held on Monday and whether any bounce can push back above $65,000 with conviction.