Bitcoin Plunge Sparks Market Woes Amid Tech Sector Shifts

Bitcoin slipped below a crucial $70,000 threshold on Thursday, as the cryptocurrency's downturn showed no signs of abating. Falling by 3.8% to $69,858, its lowest since November 2024, Bitcoin's drop coincided with significant losses for the year, posing broader concerns in the tech sector.

Analysts point to Kevin Warsh's nomination as Federal Reserve Chair as a key trigger, with expectations he will reduce the Fed's balance sheet. This has historically benefited cryptocurrencies through increased market liquidity. The market perceives Warsh as a potential hawkish influence, leading to concerns over diminishing support for speculative assets.

The global crypto market has shed nearly $1.9 trillion since its peak in October, with Bitcoin and other tokens notably impacted by the broader tech stock rout. Institutional investors withdrawing from ETFs, witnessed in significant outflows, have fueled pessimism, raising caution among market watchers.