Bitcoin experienced a downturn, trading at nearly $65,000, which is about half its all-time high of $126,080. After reaching above $69,000 earlier in the week, the leading cryptocurrency faced a decline of over 3% as investor sentiment shifted, coinciding with a drop in stock markets.
The S&P 500 fell by 0.7%, while the Nasdaq saw a more significant drop of 1.15%. Currently, Bitcoin is priced at $65,222, reflecting a 3.5% decrease compared to the previous week, according to data from CoinGecko. Analysts from Tokyo-based crypto exchange Bitbank noted that after Bitcoin hit the psychological $70,000 mark, the momentum slowed, leading to trading in a narrow range as new catalysts have been absent.
Other major cryptocurrencies followed Bitcoin’s trend, with Ethereum down over 5% to $1,918, XRP dropping approximately 4% to $1.35, and Solana also declining by more than 5% to $81.50. In contrast, gold prices increased to $5,268 as investors sought refuge in safe-haven assets amid the market’s volatility.
On the stock market front, CoreWeave, a Bitcoin mining firm transitioning to AI-focused cloud services, saw its shares plummet over 20% after Macquarie lowered its price target from $115 to $90. The firm was reported to have missed earnings expectations and requires significant investment to expand its computing capacity effectively. Similarly, BitMine Immersion Technologies, which holds a substantial Ethereum treasury, faced a share price decline of 7.3%, while Sharplink, another Ethereum treasury competitor, saw its shares drop by 6.7%.
However, not all sectors faced adversity. Block Inc., the payments processor co-founded by Jack Dorsey, bucked the trend, witnessing a notable share price increase of nearly 15%. This surge followed the announcement that the company would reduce its workforce by 40% to shift its operational focus toward artificial intelligence.
Despite the challenges faced by the broader cryptocurrency and tech markets, the resilience displayed by Block Inc. highlights the potential for companies to adapt and thrive amidst industry shifts.