Bitcoin Retreats as Tech Stocks and Precious Metals Slide
Cryptocurrencies fell sharply on Wednesday as their strong correlation with the software sector reasserted itself. Bitcoin (BTC $70,086.22) slipped back toward last week’s lows, giving up recent gains above $70,000 and trading near $65,000.
Bitcoin dropped about 2% over 24 hours, while ether (ETH $2,093.00) and solana (SOL $86.67) posted similar losses.
The decline mirrored broad weakness in the Nasdaq, which fell 2%. The software-focused iShares Expanded Tech-Software Sector ETF (IGV) led the slump with a 3% drop, extending its year-to-date loss to 21% as investors reevaluate pricey valuations amid rapid AI advances.
“Software stocks are struggling again today. IGV is essentially back to last week’s panic lows,” said macro strategist Jim Bianco. “And don’t forget there’s another type of software, ‘programmable money’ — crypto. They are the same thing.”
Precious metals also tumbled. Silver plunged 10.3% to $75.08 per ounce, and gold dropped 3.1% to $4,938, erasing earlier gains.
