Bitcoin (BTC) is now trading at $82,000 U.S. as cryptocurrencies slide lower alongside stocks.
The largest cryptocurrency by market capitalization is trading at its lowest level since the tariff rout in April of this year.
The wider crypto market is in its worst drawdown since 2017, with Ethereum (ETH) trading at $2,700 U.S., having dropped below the key support level of $3,000 U.S.
Cryptocurrencies had staged a tentative recovery immediately after chipmaker Nvidia (NVDA) posted strong third-quarter financial results.
However, the rally led by Nvidia has faltered, dragging U.S. equities and cryptocurrencies lower. For crypto, the slide continues a downward spiral that has been ongoing for more than a month.
Investors are pulling back from riskier assets as hopes for more interest rate cuts from the U.S. Federal Reserve fade. Markets are now pricing in a 30% chance of a December rate cut.
Other prominent crypto such as XRP (XRP), Solana (SOL), and Dogecoin (DOGE) are down 5% or more in early trading on Nov. 21 as the rout in digital assets intensifies.
Some traders see a correlation between artificial intelligence (A.I.) related stocks and cryptocurrencies such as Bitcoin as they are both viewed as high beta investments.
Bitcoin’s price has also been hurt by cascading liquidations of highly leveraged investors who plowed money into crypto during the summer and are now being forced to sell as prices fall.
BTC is now down 11% on the year and down 24% in the past month.
