Bitcoin fell below 71,000 dollars.

Bitcoin Enters a Downward Trend

Bitcoin has fallen below $71,000 with a loss of 7.5% during Asian trading hours. This drop occurred as the global sell-off in technology stocks spilled over into the cryptocurrency market.

Following sharp losses in Asian and US stock markets, investors are turning away from riskier assets due to soaring valuations of artificial intelligence investments, high valuations, and slowing earnings.

The recent decline in Bitcoin reveals its behavior as a high beta risk asset in an environment of reduced liquidity and increasing macroeconomic uncertainty, alongside sharp fluctuations in precious metals like silver and gold. The recent price volatility reflects a fragile resolve rather than signaling a definitive trend change.