Bitcoin, Ethereum Dive Deeper Amid AI and Macro Angst

Bitcoin and Ethereum faced significant declines due to macroeconomic uncertainties and the impact of major tech firms investing in artificial intelligence. Bitcoin fell to approximately $92,200, marking a 14% decrease over the past two weeks and its lowest price since late April. Liquidation of positions skyrocketed, with over $900 million liquidated in 24 hours, adding to market volatility. Ethereum also dipped below $3,000, reaching its lowest level in four months, alongside notable declines in other cryptocurrencies like Solana and Dogecoin. The tech sector's struggles continued, as major indexes like the Nasdaq and S&P 500 closed down by about 1%. Analysts attributed the declines to a mix of investor caution regarding U.S. interest rates and increased AI spending potentially affecting large tech companies’ profitability. Despite the grim outlook, some experts suggested the market correction could be a typical part of the cycle and predicted that Bitcoin's price might stabilize around its previous uptrend line.

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