Bitcoin’s <50% Plunge> as Tech Stocks Tumble: Is Just a Myth?

Bitcoin and other cryptocurrencies are taking a hard hit right now. While some tech stocks dip, crypto prices have fallen off a cliff. Bitcoin has lost almost half its value in just four months. This drop brings back old doubts about whether crypto is stable or just a risky bet.

The Sharp Crypto Drop: Numbers Don’t Lie

Bitcoin hit a peak above $126,000 in October. But on Thursday, it crashed below $64,000. That’s a drop of more than 13% in one day and nearly 50% from its high. Ethereum, the number two crypto, saw a similar fall. Many experts warn the sell-off might continue.

At the same time, real gold prices jumped over 25% in the same period. Investors fled to this classic safe asset while dumping digital ones. Why the big difference?

• Bitcoin: Down 50% in four months.
• Ethereum: Matching losses.
• Gold: Up 25%.
• Nasdaq (tech index): Down 1.5% on Thursday.

Crypto’s fall is way worse than the tech market dip. This shows how tied bitcoin is to tech hype.

Tech Trouble Sparks the Fire

Tech stocks soured lately. News about AI firm Anthropic shook markets. Their new AI tools could replace pricey software that companies use now. This threat hit software stocks hard. The Nasdaq fell 1.5% as fear spread.

Bitcoin follows tech like a shadow. When tech feels good, bitcoin soars. When tech sours, bitcoin plunges harder. A tech expert notes, “Bitcoin acts like a tech stock on steroids.” It rides the same waves but with bigger ups and downs.

Trump’s Crypto Boost Fizzles Out

The current president loves crypto. His team pushed friendly rules. Exchange-traded funds (ETFs) for bitcoin launched, drawing in big money. He even set up a federal bitcoin reserve last year.

Trump and family links to World Liberty Financial add hype. This project focuses on stablecoins. These are cryptos pegged to the dollar, so they avoid wild swings.

But good vibes faded. Economic worries and world tensions made investors nervous. The big trigger? Treasury Secretary Scott Bessent told Congress: no government bailout for bitcoin. Sellers panicked, erasing all gains since Trump took office.

History of Crypto Crashes: A Familiar Story

Bitcoin crashes are old news. In 12 years, it suffered six drops of 60% or more. Each time, it bounced back to new highs. A finance professor says, “We’ve seen this movie before. It’s super volatile.”

Will it recover again? No one knows for sure. But new risks make this crash different.

New Dangers: Leverage and Shorting Fuel the Fire

Trading has changed. It’s easier to “short” crypto – bet on price falls. You sell high now, buy low later. This can lead to tricks by big players.

Opposite bets are common too: borrow money to buy crypto, hoping for gains. If prices crash, you must sell fast to cover loans. This forces more selling, speeding up the drop.

These tools make crypto wilder. Ups go higher, downs go deeper.

Bitcoin vs Gold: Why the Idea Fails

Bitcoin fans call it . A hedge against inflation and wars. But facts say no. Gold holds or rises in tough times. Bitcoin tanks with stocks.

Gold has 5,000 years of trust. Bitcoin? Just 15 years of boom-bust cycles. It’s more like a tech gamble than a safe store of value.

What This Means for Crypto Investors

If you’re in crypto, stay calm. Volatility is part of the game. But don’t bet the farm. Diversify with stable assets like gold or bonds.

Stablecoins offer a middle ground. Pegged to dollars, they dodge big swings. Projects like those tied to big names show promise for everyday use.

Blockchain tech behind crypto has real power. Fast payments, smart contracts, DeFi. But prices? Driven by hype, not utility yet.

Looking Ahead: Rebound or New Lows?

Bitcoin has always climbed back. ETFs bring steady cash. Pro-crypto rules help. But leverage risks and market fears loom.

Watch tech stocks, inflation data, and world news. A tech rebound could lift crypto. Or deeper recession might crush it.

For long-term believers, this dip is a buy chance. History favors holders. Newbies? Learn first, invest small.

Key Takeaways for Your Portfolio

1. Crypto tracks tech, not gold.
2. Expect 50%+ drops – plan for them.
3. Stablecoins for less risk.
4. Leverage amps volatility – use wisely.
5. Blockchain utility grows beyond prices.

The <50% plunge> tests faith in bitcoin. Is it or just another risky asset? Time will tell. Stay informed, trade smart.

What do you think? Will bitcoin hit new highs soon? Share in comments.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.