Bitcoin remained volatile as investors pulled back from speculative technology assets, forcing the world’s largest cryptocurrency into the frontline of a broad market retreat.
While Bitcoin was recently trading 1.6% higher at about $93,200, earlier on Tuesday it briefly slipped to $89,259, its lowest level since April 22. Based on Coin Metrics data, the digital asset has gained just 2% over the last twelve months.
The selloff comes amid a sharp exit from technology stocks linked with artificial intelligence, a reversal that Bitcoin appeared to anticipate after hitting a record high above $126,000 in early October and retreating steadily since.
In the past six weeks, fears of a potential technology bubble—combined with diminished hopes for an imminent US interest rate cut—have erased more than $1 trillion from the crypto market’s capitalization. CoinGecko’s data shows that the overall value of the cryptocurrency universe, which covers more than 18,500 tokens, has dropped by a quarter since the highs reached in early October.
Market sentiment has grown increasingly anxious worldwide, as warnings mount over a possible AI-driven stock bubble. Even the chief executive of Google’s parent company has cautioned that “no company” would be spared should the bubble burst.
