Bitcoin fell below $64,000 Thursday morning as tech stocks continued to decline. The flagship cryptocurrency was trading around $63,240 in mid-morning, with a drop of over 2.5%.
The price decline comes a week after the halving phase of Bitcoin, which split the reward for miners from 3.125 Bitcoin to 6.25. The top cryptocurrency was celebrating the post-halving phase earlier this week. Now, the crypto has lost nearly 10% of its value in a month.
The decline in Bitcoin’s price is mainly due to losses in major U.S. technology stocks, which were triggered by weak earnings reports from Meta $META and IBM $IBM. In the morning, Meta’s shares lost over 12%, while IBM’s fell more than 8%. Microsoft $MSFT and Google $GOOGL parent company Alphabet are expected to release their earnings reports after Thursday’s market close. Their shares were down 4.4% and 2.5%, respectively, in mid-morning.
It is common for Bitcoin to follow the movement of U.S. tech stocks as both are seen as high-return investments and are associated with the development of future technologies. Moreover, Bitcoin and blockchain technology have become more mainstream due to the involvement of big companies such as BlackRock $BLK, as well as the launch of spot Bitcoin ETFs.
The bearish sentiment spread across the crypto market after Bitcoin’s price dropped, resulting in the global crypto market cap dropping by 2.16% to $2.35 trillion. Ether, the second-largest cryptocurrency by market capitalization, was down by 2.6%, hovering around $3,100. Solana shed nearly 6%, trading around $145 in mid-morning. Top meme-coin Dogecoin lost 3.5% in its value, trading at $0.14, according to CoinMarketCap.