FX.co ★ Bitcoin Hits Seven-Month Low

Bitcoin's value dipped towards $85,000 on Friday, reaching its lowest point since April. This downturn came as part of a broader global selloff in technology stocks, spurred by renewed apprehensions surrounding the artificial intelligence sector. The adverse sentiment spread to risk assets, including cryptocurrencies. While global equities experienced a brief rally on Thursday, fueled by exceptional earnings from AI industry leader Nvidia, concerns over ongoing valuations swiftly dampened these gains. Additionally, expectations that the US Federal Reserve will refrain from reducing interest rates in December, amid economic uncertainties, exerted more pressure on the market. A mixed US employment report for September showed accelerated job growth but also an uptick in the unemployment rate, providing little directional clarity. The correlation between Bitcoin and the tech sector has risen to 80%—a six-month high—indicating that Bitcoin is deviating from its perceived function as a safe haven during periods of heightened uncertainty.