Featured News Headlines
Bitcoin Traders Wait on the Sidelines as Market Volatility Explodes
Nasdaq Wipeout Drags Bitcoin Down – Volatility across the Big Tech sector and renewed uncertainty around Federal Reserve policy rattled global markets this week, pushing Bitcoin into a deeper downturn and sending its correlation with the Nasdaq to its highest level in six months.
Tech Turmoil Ripples Into Crypto Markets
The tech-heavy Nasdaq Index plunged 4% intraday on Thursday, despite upbeat earnings and guidance from Nvidia. Investor anxiety surged as markets weighed skyrocketing AI-related spending and the mounting debts required to fund massive data center expansion.
Bitcoin mirrored the move, sliding below $86,000 for the first time since April. The world’s leading cryptocurrency traded near $81,481, reinforcing the growing link between digital assets and major U.S. tech benchmarks.
Macro Fears Grow as Fed Rate-Cut Expectations Fade
Billionaire investor Ray Dalio warned that markets are already “in bubble territory,” though he sees no clear trigger for an imminent crash. While he urged investors to consider scarce assets like gold, Dalio said his bigger concern is rising wealth taxes, not tighter policy.
However, sentiment shifted sharply after the U.S. posted a stronger-than-expected September jobs report, prompting traders to question whether the Federal Reserve would continue easing. Nonfarm payrolls rose by 119,000, overturning the previous month’s decline. According to minutes from the Fed’s October meeting, most officials believe that additional rate cuts could risk entrenching inflation.
Market pricing now assigns just a 20% chance of interest rates reaching 3.50% by January 28, down from 55% a month earlier—highlighting the market’s renewed caution.
AI Spending Fears Overshadow Strong Earnings
Despite upside surprises from companies including Walmart, analysts say investors remain uneasy about heavy AI infrastructure spending. D.A. Davidson’s Gil Luria cautioned that data centers are “speculative investments” that could face pressure in the coming years, adding that Nvidia’s strong earnings are not a reliable indicator of sustainable AI economics.
The Nasdaq has now fallen 7.8% from its all-time high, erasing 10 weeks of gains. During the volatility, Bitcoin’s correlation with tech stocks surged to 80%, implying traders are prioritizing macro signals over the asset’s decentralization and predictable monetary policy.
What’s Next for Bitcoin?
Despite the pullback below $90,000, traders are not broadly bearish. Instead, many appear to be waiting for clearer macro signals. If Dalio’s perspective proves correct, panic sellers may regret exiting early, especially as U.S. fiscal pressures intensify and President Donald Trump promotes his tariff-driven economic stimulus proposal.
