Bitcoin Faces Headwinds as Tech Stocks Slide
The cryptocurrency market is grappling with a significant selloff, compounded by a weakening tech sector. Bitcoin, alongside other digital assets, is experiencing downward pressure as a “risk-off” sentiment takes hold in traditional markets.
Macroeconomic Concerns Emerge
The Nasdaq has seen a decline of approximately 7% in recent sessions. This drop is fueled by concerns over inflation and the potential for continued interest rate hikes by the Federal Reserve. The recent selloff in stock values, especially among leading technology companies, has amplified market anxieties.
Expert Opinion
Quinn Thompson, founder of the hedge fund Lekker Capital, expressed significant caution regarding risk assets, citing “hot” inflation data and rising long-term inflation expectations as key concerns. He noted that even positive news items appear to have little effect on upward price movement in the crypto market.
“Maximum caution is warranted in risk assets,” said Quinn Thompson, founder of hedge fund Lekker Capital.
Thompson is predicting that Bitcoin could drop to the $70,000 range by the end of March.
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