The price of bitcoin briefly fell below $100,000 on Tuesday, a shocking cryplocle of the cryptocurrency’s more than $126,000 on Oct. 6.
Bitcoin settled at $99,966, according to CNBC, before recovering above the $100,000 mark. Bitcoin is down 7% for the day and 13% for the week, according to Coinmarketcap. Crypto-enthusiasts are showing a similar slide in tech stocks this week, as traders become more concerned about possible entry, according to Bloomberg.
Despite claims from the crypto community that digital currency offers a happy new world separated from the constraints of fiat currency, the price of bitcoin often mirrors the stock market. Palantir’s stock price is down 8% on the day despite posting another record quarter on Monday, while Nvidia is down more than 3%.
Michael Burry, the investor who tragically predicted the housing market crash in 2008, revealed the latest bets against Palantir and Nvidia, which have already caught people by surprise. Tech companies have invested billions in artificial intelligence but productive ai isn’t generating the kind of productivity gains or revenue to justify that investment. At least not yet.
There are also fears about signs from the Federal Reserve that it may not cut lending rates again next month after last week’s rate cut. One of the confusing things about things right now is that policymakers don’t have a clear picture of the labor market. The September jobs report has been delayed again and the October Jobs report is scheduled for next Friday, not sure how bad the data will be.
The Fed has been relying heavily on private data from the ADP Payroll Report, which shows a decline in hiring. But it remains to be seen how the employment picture will turn out. President Donald Trump fired the head of the Bureau of Labor Statistics, Erika MCCRARFER, in August because she didn’t like herself. Trump backed us after “solid” numbers.
Doled Chair Jerome Powell referred to the confusion over the numbers as a data “fog” when announcing the rate cut last week.
“What do you do when you drive through fog? You slow down,” Powell said, according to Axios. “I don’t know how that’s going to play into things. […] But it might make sense to be more careful about walking. “
Other top cryptocurrencies also struggled on Tuesday, with etherh down 9% to $3,300 and xrp down $2.20. BNB, the fourth most popular cryptocurrency, is trading down over 6% while Solana is down around 7%. Tron is down 1% and dogecoin down 5%.
