Bitcoin dropped below $ 65,000 in a flash

Bitcoin BTC $66,652.56 Mezo Wrapped BTC -0.97% Market capitalization $37.63 million VOL. 24 hours $1.61 billion has recently dropped below $ 65,000 amid a large-scale sell-off in the artificial intelligence sector. Analysts note that the fall of AI-related tech companies has had a direct impact on the crypto market and emphasized the growing connection between digital assets and the broader tech segment.

At the same time, the correlation between cryptocurrencies and stocks has risen sharply, reaching 0.9, indicating a strong positive correlation. This means that investors can now perceive Bitcoin and AI stocks as similar assets and react to market events with a common sentiment.

The pullback in Bitcoin’s price coincided with a revision of valuations in the AI sector. Some market participants began to question the sustainability of the rally in AI stocks, and the correction was fueled by profit-taking, concerns about high valuations, and a general change in investor risk appetite.

Against this backdrop, the increasing integration of the crypto market with traditional financial markets and technology trends is being emphasized. Traders are closely monitoring the dynamics of the AI sector, as further fluctuations could have a significant impact on the trajectory of Bitcoin’s price and the broader digital asset market.

Analysts also emphasize the convergence of interests between investors in Bitcoin and AI. Both segments attract both institutional and retail participants, and the narrative of «disruptive technologies» makes them interconnected. In such an environment, the future dynamics of Bitcoin will largely depend on the stability and further development of the AI sector.