
Bitcoin has dropped nearly 2% today, falling below $87,000 for the first time since December 2.
Throughout this year, Bitcoin has generally acted as a proxy for risk assets. However, it has recently underperformed compared to this measure. If Bitcoin’s performance realigns with risk assets, it could signal downside risks for the Nasdaq.
Some argue that Bitcoin and technology stocks may decouple, especially given the current enthusiasm for artificial intelligence (AI). Bitcoin received a significant boost last year around this time, driven by political events such as Donald Trump’s election and related deregulation. On December 15 last year, Bitcoin was trading just above $100,000 but has struggled to sustain that momentum.
The main risk now is that Bitcoin is increasingly perceived as “yesterday’s trade”—a technology lacking the disruptive potential AI is believed to have. This perception may lead to a persistent decline in market enthusiasm and a gradual erosion of Bitcoin prices, especially if overall risk appetite diminishes.
Original Source: Adam Button of investinglive.com







