Bitcoin $BTC$59,211.32 started the Thursday U.S. session with a fast 5% plunge to $58,000, its weakest level since 2024.
The largest cryptocurrency has since bounced to $59,400, down 2.5% over the past 24 hours. The selloff spread across the broader crypto market. Ether (ETH) dropped to around $1,550, down 5.5%, while solana (SOL) and DOGE$0.07293 posted similar declines.
The move came as memory chip maker Micron (MU) soared following strong earnings Wednesday evening, but much of the rest of mega-cap tech fell, leaving the Nasdaq down 0.4%.
Markets continue to digest not only the capital demands of the AI boom, but the Fed’s surprisingly hawkish turn last week under new Chairman Kevin Warsh.
Policymakers signaled that their next move is almost surely going to be a rate hike rather than a rate cut, and that hike could come far sooner than markets had previously expected.
Poised for short-squeeze
While bitcoin remains in a sharp downtrend dating back to October, derivatives data points towards some short-term relief.
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