Bitcoin, Ethereum Dive Deeper Amid AI and Macro Angst

Bitcoin and Ethereum experienced significant declines amid growing macroeconomic uncertainties and concerns about major tech companies investing heavily in AI initiatives. Bitcoin fell to approximately $92,200, marking its lowest point since late April and a decline of over 14% in two weeks. Ethereum also dipped below $3,000, reaching a four-month low of $2,960. The overall cryptocurrency market saw liquidations exceeding $900 million, predominantly in long positions. Analysts attribute the downturn to a risk-off sentiment influenced by potentially stable U.S. interest rates and a less optimistic economic outlook. Despite the bearish trend, some experts suggest that the correction is a part of the normal market cycle, and a recovery might follow. However, predictions indicate that Ethereum could trend lower to $2,500, reflecting growing pessimism in the crypto markets. Stocks related to cryptocurrency exchanges, such as Coinbase, also suffered losses in this wider market slump.

Source 🔗