Cryptocurrency prices are down across the board on July 13 and falling alongside technology stocks.
The price of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other digital assets are down 2% or more in early trading as a selloff in richly valued technology stocks resumes.
The Nasdaq Composite (NDAQ) index is down 365 points, or 1.25%, in premarket trading as investors rotate out of stocks tied to the artificial intelligence (A.I.) trade.
Stocks of microchip companies such as Micron Technology (MU) and Advanced Micro Devices (AMD) are down 5% or more after running higher in in this year’s first half.
The stock of South Korean chipmaker SK Hynix (SKHY) is down 8% after listing its shares on the Nasdaq exchange on July 10.
Fueling the rotation out of risk assets such as crypto and technology stocks is the resumption of hostilities between the U.S. and Iran, which are again trading missile strikes.
Consequently, crude oil prices are up 4%, with Brent crude oil, the international standard, trading near $80 U.S. per barrel.
The geopolitical turmoil appears to have investors rotating back into value stocks or moving cash to the sidelines.
The decline in cryptocurrency prices comes after Bitcoin posted a winning week to start July. In recent days, the largest digital asset was trading at $64,000 U.S.
In early trading on July 13, BTC is trading at $62,500 U.S. The cryptocurrency has been stuck in a range of $60,000 U.S. to $65,000 U.S. since the end of June.
