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\n Bitcoin and stocks are in a bout of volatility \u2014 and investors say more turbulence could be in store.\n <\/p>\n \n US stocks closed lower Tuesday, extending a recent tumble<\/a>. The Dow fell 499 points, or 1.07%. The S&P 500 fell 0.83%. The tech-heavy Nasdaq Composite slid 1.21%.\n <\/p>\n \n The S&P 500 closed lower for the fourth day in a row, marking its longest daily losing streak since August.\n <\/p>\n \n Just six weeks after notching a record high above $126,000, bitcoin has plummeted more than 26%. The cryptocurrency on Tuesday afternoon traded just below $93,000, erasing all of its gains for this year.\n <\/p>\n \n Bitcoin late Monday had dipped below $90,000<\/a> for the first time in seven months before paring some losses early Tuesday.\n <\/p>\n \n Investors in recent weeks have increasingly shunned risky assets like AI stocks and crypto. Not helping: uncertainty about whether the Federal Reserve will cut interest rates next month. The risk-off attitude is weighing on bitcoin, a highly speculative and volatile investment.\n <\/p>\n \n In Wall Street terms, bitcoin is in a bear market \u2014 when a price falls more than 20% from a recent peak. Bitcoin has shed more than $600 billion in market value during its tumble, according to CoinMarketCap data.\n <\/p>\n \n \u201cBitcoin\u2019s pullback is part of a broader shift in risk sentiment,\u201d said Haider Rafique, global managing partner at OKX, a crypto exchange.\n <\/p>\n \n After a strong six-month rally in stocks, nerves are mounting about expensive valuations and enormous spending plans by big tech companies. A wide range of tech and AI stocks were lower on Tuesday: Nvidia shares (NVDA<\/a>) fell 2.81%. Amazon shares (AMZN<\/a>) fell 4.43% and Microsoft shares (MSFT<\/a>) fell 2.7%.\n <\/p>\n \n The tech-heavy Nasdaq is down 6.6% since hitting a record high late October and has shed roughly $2.6 trillion in market value during its slide.\n <\/p>\n \n Wall Street\u2019s fear gauge, the VIX, jumped 10% on Tuesday. CNN\u2019s Fear and Greed index<\/a> hovered in \u201cextreme fear\u201d and slid to its lowest level since early April.\n <\/p>\n \n Adding to the pressure on bitcoin: Long-term investors may be closing their positions to lock in profits after meteoric gains in recent years.\n <\/p>\n \n \u201cBitcoin has struggled as a result of selling pressure from long-term holders taking profits but also uncertainty around Fed policy, the liquidity environment and other macro conditions,\u201d said Gerry O\u2019Shea, head of global market insights at Hashdex Asset Management.\n <\/p>\n \n Bitcoin has struggled to meaningfully recover since a flash crash<\/a> on October 10 when President Donald Trump reignited his trade war with China. Some buyers and sellers have left the market since then, so there are fewer orders for bitcoin, leaving the price more susceptible to volatility, according to Peter Chung, head of Presto Research.\n <\/p>\n \n \u201cBitcoin is under pressure in line with other risk assets (see the price actions of the AI stocks), but its downside is amplified due to a crypto-specific factor \u2014 namely, the orderbooks have gotten thinner in the aftermath of the (October 10) liquidations, which hurt many market makers in the space,\u201d Chung said in an email.\n <\/p>\n \n Up until recent weeks, it had been a relatively strong year for bitcoin. The cryptocurrency was trading at around $69,000 ahead of Trump\u2019s reelection in November before surging about 83% \u2014 amid bouts of volatility \u2014 to its record high above $126,000 in early October.\n <\/p>\n \n Bitcoin surpassed $100,000<\/a> for the first time in early December 2024 as investors leaned in to optimism about the Trump administration ushering in crypto-friendly regulations.\n <\/p>\n \n Trump has embraced the cryptocurrency industry and his administration has loosened oversight and advocated for pro-crypto legislation. The GENIUS Act<\/a> was passed by Congress and signed into law by Trump in July, ushering in a new era of regulation for stablecoins<\/a>, another kind of crypto.\n <\/p>\n \n Trump tapped Paul Atkins, a pro-crypto regulator, to chair the Securities and Exchange Commission, and cryptocurrencies continue to enter the mainstream, with new exchange-traded products giving investors easier access to buying and selling crypto.\n <\/p>\n \n Bitcoin traded around $94,000 entering the year. It has now wiped out its gains over the past 11 months. By comparison, the benchmark S&P 500 is up 12.5% this year. Gold prices are up 54%.\n <\/p>\n \n While tech stocks have also come under pressure, investors have been swooping in to the buy the dip. Nvidia (NVDA<\/a>) on Friday tumbled as much as 3.36% before finishing the day higher by 1.77%. Nvidia on Monday fell as much as 3.08% before finishing the day lower by just 1.88%.\n <\/p>\n \n Meanwhile, bitcoin is still languishing around $93,000 and has yet to see a meaningful rebound. Some analysts say the crypto market is at an inflection point, where the positive catalysts this year have been priced in while there is increasing uncertainty about the outlook.\n <\/p>\n \n \u201cHow the market behaves over the next several days will signal whether this becomes a deeper reset or just a sharp, temporary dip in an otherwise intact cycle,\u201d Rafique at OKX said.\n <\/p>\n \n Some crypto investors are still optimistic. Bitcoin in April had tumbled as low as about $74,500 before surging above $126,000 in early October.\n <\/p>\n \n \u201cRight now, some investors see sideways churn and get spooked,\u201d said Ryan Rasmussen, head of research at Bitwise Asset Management. \u201cBut in our view it\u2019s the perfect opportunity for investors to build on existing bitcoin positions, and for those who have been sidelined to enter the market.\u201d\n <\/p>\n<\/p><\/div>\n New York \u00a0\u2014\u00a0 Bitcoin and stocks are in a bout of volatility \u2014 and investors say more turbulence could be in store. US stocks closed lower Tuesday, extending a recent tumble. The Dow fell 499 points, or 1.07%. The S&P 500 fell 0.83%. The tech-heavy Nasdaq Composite slid 1.21%. The S&P 500 closed lower for … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":10511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-10510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/11\/Why-crypto-is-melting-down-and-stocks-keep-falling.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10510"}],"version-history":[{"count":1,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10510\/revisions"}],"predecessor-version":[{"id":10512,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10510\/revisions\/10512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/media\/10511"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n New York<\/span>
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