BTSE COO Jeff Mei noted that part of the recent pullback in the cryptocurrency market is due to growing concerns that AI-themed tech stocks may be overvalued.
According to Mei, Bitcoin's decline could deepen further if there is a sharp sell-off in AI and tech stocks.
SignalPlus partner Augustine Fan emphasized that there are no new positive catalysts in the short term. He noted that security and regulatory uncertainties persist, limiting the appetite of large traditional institutions to enter the market.
According to market data, the global cryptocurrency market capitalization reached an all-time high of approximately $4.4 trillion in early October. However, a nearly 20% correction in the following month erased much of the year's gains. The liquidation of approximately $19 billion in leveraged positions triggered a wave of panic-inducing selling and eroded market confidence.
Bitcoin's price also dipped below the 200-day moving average, a key technical threshold, marking its first downward break since the 2022 bear market.
*This is not investment advice.
