On Friday at the opening of trading on Wall Street, Bitcoin (BTC) remained under pressure below the $80000 mark, as fears about artificial intelligence amplified a broader decline in risk assets, and the hack of Binance reignited debates about the security of digital assets.
TradingView data showed that the BTC/USD rate fell 1.1% for the day, dropping to its lowest level since September 18.
US stock markets opened sharply lower as traders reacted to weak forecasts from technology giants. Shares of Intel, which on Thursday warned of lower-than-market-expected fourth-quarter sales, fell nearly 30% at the open of trading on Friday.
The price declines put pressure on both technology giants and chipmakers, while analytical research warns of new threats to confidence in the artificial intelligence sector.
“Amid renewed concerns about AI monetization, the rotation of stocks is likely to continue today, but broader indexes will reflect the decline in the technology sector’s value,” according to a JPMorgan analytical note cited by CNBC.
At the time of writing, the Nasdaq Composite index, dominated by technology companies, was down 2.5% at around 25 500 points, matching the level last seen on August 3.
Beyond stocks, the domino effect spread to precious metals: gold traded at just $3891 per ounce, reaching its lowest level in a year.
The weakest October since 2014?
Cryptocurrency markets continue to feel the fallout from the multibillion-dollar hack of Binance, the largest cryptocurrency exchange.
The platform said it would cover the losses out of its own capital following the theft of coins and tokens worth $6.3 billion. A company representative said that Binance currently has $5 billion in the form of the corresponding tokens.
Commenting on the cryptocurrency market outlook, trading firm QCP Capital warned that macroeconomic conditions, concerns in the technology sector and the Binance hack “have created a period of heightened market repricing”.
“Technology sector profit forecasts regarding future capital expenditures will remain a critical factor for understanding the trajectory of investment in artificial intelligence infrastructure and expected profitability,” according to the analytical review QCP Market Colour published on Friday.
According to CoinGlass data, at a price of $77000, the BTC/USD rate was set to close the month down 7.7% – the worst October performance since 2014.
