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Bitcoin price today: slides below $64k as tech stocks rout extends into crypto

Published 04/25/2024, 01:41 AM
Updated 04/25/2024, 07:54 AM
© Reuters

Investing.com-- Bitcoin price dropped on Thursday, pressured by weak risk appetite as a rout in major U.S. technology stocks spilled over into crypto markets, while anticipation of more cues on interest rates also weighed.

The world’s largest cryptocurrency dipped 3.9% over the past 24 hours to $63,984.9 by 07:50 ET (11:50 GMT).

Bitcoin-tech stock correlation back in play 

Losses in Bitcoin came largely in tandem with a drop in major U.S. technology stocks, following a weaker-than-expected revenue forecast from Facebook owner Meta Platforms Inc (NASDAQ:META). Meta slid 15% in aftermarket trade, while its peers Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) sank 2% and 3%, respectively. 

Bitcoin generally trends to track movement in U.S. technology stocks, given that both sectors are viewed as opportunities for high-return, speculative investment. 

This trend had somewhat petered out earlier this year, especially as the launch of spot exchange-traded funds in the U.S. sparked outperformance in Bitcoin. 

But Bitcoin’s correlation to tech was seen coming back into play in recent weeks, as hype over the ETF dwindled, and as both sectors faced renewed price pressures from the prospect of higher-for-longer U.S. interest rates. 

Bitcoin is down about 8% over the past month, compared to a 4% drop in the tech-heavy Nasdaq 100 Futures index. The cryptocurrency has also remained in a trading range between $60,000 and $70,000 after hitting record highs in early-March.

This increasing correlation put focus squarely on earnings from tech giants Microsoft and Alphabet- which are due later on Thursday.

Crypto price today: altcoins weaken as rate jitters persist 

Fears of higher-for-longer U.S. interest rates also remained in play, as the dollar hovered below five-month highs and pressured most tokens. 

Ethereum fell 5% to $3,114.0, while Solana and XRP slid 8.7% and 4.5%, respectively.

Markets were also awaiting more cues on the U.S. economy and interest rates from upcoming data prints.

Gross domestic product data is due later on Thursday, and is expected to show just how resilient the U.S. economy remained in the first quarter.

More closely watched will be PCE price index data- due on Friday. The reading is the Federal Reserve’s preferred inflation gauge, and is likely to factor into the central bank’s plans for interest rates. 

Morgan Stanley reportedly considering letting brokers pitch BTC ETFs to clients

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

Previously, the firm had allowed the purchase of bitcoin ETFs following their approval earlier this year, but only if the client initiated the request.

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

Should it happen, the move is expected to potentially increase capital inflows into the funds, offering investors the benefits of bitcoin investment without the need for direct exposure to the cryptocurrency.

“We’re going to make sure that we’re very careful about it...we are going to make sure everybody has access to 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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