Slips Below $64,000 as Tech Stocks Rout Spreads to Cryptocurrencies By Investing.com

Investing.com– The price fell Thursday, pressured by weak risk appetite as the rout in major U.S. technology stocks spilled over into cryptocurrency markets, while anticipation of further interest rate signals also weighed.

The world’s largest cryptocurrency fell 3.9% over the past 24 hours to $63,984.9 as of 7:50 a.m. ET (11:50 GMT).

The correlation between Bitcoin stocks and technology is back in play

Bitcoin’s losses came largely in tandem with declines in major U.S. technology stocks, following lower-than-expected revenue forecasts from Facebook owner Meta Platforms Inc (NASDAQ:). Meta fell 15% in aftermarket trading, while its rivals Microsoft Corporation (NASDAQ:) and Alphabet Inc (NASDAQ:) fell 2% and 3%, respectively.

Typically, Bitcoin tends to follow the movements of US technology stocks, as both sectors are seen as opportunities for high-yielding speculative investments.

This trend had somewhat petered out earlier this year, especially when the launch of spot ETFs in the US triggered an outperformance in Bitcoin.

But the correlation between Bitcoin and technology has come back into play in recent weeks, as ETF hype has waned and both sectors have faced renewed price pressures stemming from the prospect of higher U.S. interest rates for longer. long.

Bitcoin has fallen about 8% over the past month, compared to a 4% decline in the tech-heavy index. The cryptocurrency also remained in a trading range between $60,000 and $70,000 after hitting record highs in early March.

This growing correlation focuses squarely on the earnings of tech giants Microsoft and Alphabet, expected later Thursday.

Cryptocurrency price today: Altcoins weaken as rate jitters persist

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Fears of higher US interest rates for a longer period also remained in play, as the dollar settled below five-month highs and put pressure on most tokens.

fell 5% to $3,114.0, while and slipped 8.7% and 4.5%, respectively.

Markets were also waiting for further signals on the US economy and interest rates from the next data releases.

the data will be released later Thursday and is expected to show how resilient the U.S. economy remained in the first quarter.

The data will be released on Friday with more attention. The reading is the Federal Reserve’s preferred inflation indicator and is likely to impact the central bank’s plans for interest rates.

Morgan Stanley is reportedly considering allowing brokers to offer BTC ETFs to clients

Morgan Stanley, a major Wall Street firm, is considering allowing its 15,000 brokers to actively recommend bitcoin ETFs to their clients, according to a report by AdvisorHub.

Previously, the company allowed the purchase of bitcoin ETFs after their approval earlier this year, but only if the customer initiated the application.

The new strategy would allow brokers to proactively offer bitcoin ETFs to clients, reflecting the strong demand for these investment products.

If this were to happen, the move is expected to potentially increase capital inflows into the funds, giving investors the benefits of investing in bitcoin without the need for direct exposure to the cryptocurrency.

“We’re going to make sure we’re very careful about it… we’re going to make sure everyone can access it. We just want to do it in a controlled way,” AdvisorHub said in the report, citing a Morgan Stanley executive.

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