Bitcoin (BTC) and other leading cryptocurrencies are ending the trading week on a down note as digital assets get dragged lower by slumping technology stocks.
Markets around the world are sharply lower on July 17 as investors rotate out of stocks tied to the artificial intelligence (A.I.) trade.
In Japan, Tokyo’s Nikkei 225 index was down as much as 5% amid heavy selling of computer chipmakers and other A.I.-related companies.
While in the U.S., the technology-laden Nasdaq Composite (NDAQ) index was down more than 550 points, or 2%, in premarket trading as stocks of chipmakers fall sharply.
The situation is weighing on Bitcoin, which is down 2% on the day and trading at $62,700 U.S., about the same level it was at to start the trading week.
Other digital assets such as Ethereum (ETH) are also in retreat and down about 3% on the day. ETH was trading at $1,800 U.S. in premarket action.
Also weighing on crypto are rising oil prices, with Brent crude, the international standard, up nearly 3% and trading above $86 U.S. a barrel.
Oil prices have risen about 30% over the last 10 days as fighting between the U.S. and Iran has resumed and the previous ceasefire between the countries has crumbled.
Higher energy prices raise the prospect that the U.S. Federal Reserve will lift interest rates to combat a surge in inflation, which is a negative for risk assets such as crypto.
Bitcoin’s price had broken above resistance at $65,000 U.S. earlier in the week. But the gains proved short lived as crypto is once again being dragged lower by selling in the broader market.
