Bitcoin Follows Equities Lower as Investors Seek Safety
By Kirk MaltaisAfter going as high as nearly $85,000 in morning trade, bitcoin and most major cryptocurrencies joined the stock market in sinking as traders sought safe havens.The flagship cryptocurrency was down 4.1% to $81,165, according to data from the London Stock Exchange Group, though it managed to bounce slightly off of a support level of $81,000 in the early afternoon. Bitcoin joined technology and AI stocks in selling off, with the Nasdaq settling the day down 2.6% in its largest sell-off since June.Investors largely avoided assets regarded as riskier plays, as the 10-year Treasury yield fell back below 5% for the first time since late September. Concerns over France's gaping budget deficit and the risk that rising oil prices could weigh on consumption and economic growth hit global bond markets. French bonds sold off but other bonds perceived safer, like the German Bunds and the U.S. Treasurys, rose.While the rush for safety pressured bitcoin, analysts looking longer-term still see reasons to remain optimistic on bitcoin. "Hashrate is recovering as the market turns from bear to bull," said analysts with CryptoQuant in a note Thursday.Data from Coinglass shows that bitcoin ETFs have recorded net-inflows for 3 straight days, with over $500 million in inflows seen on Wednesday alone. Over the 3-day period, net inflows have totaled $1.07 billion.Other major cryptocurrencies are deep underwater in trading following the close of the stock market Thursday. Ethereum falls 4.4% to $2,381, XRP is down 6.2% to $1.30, and solana falls 4.6% to $103.07.Write to Kirk Maltais at [email protected]