Tech Turmoil Impacts Bitcoin: Volatility Drives Sharp Correction

Bitcoin experienced a significant drop on Thursday as volatility in the tech sector and worries about an AI-driven market bubble spilled over into crypto. This selloff aligns with a steep decline in the Nasdaq, which dropped 4% despite strong earnings and guidance from Nvidia. Investor concerns regarding rising artificial intelligence spending, corporate debt, and uncertain Federal Reserve policy contributed to the rapid Bitcoin drop. The correlation between Bitcoin and major U.S. equity markets became even more apparent as both sectors witnessed significant downturns.