Bitcoin Slides to Seven-Month Low Amid Technological Tensions

The recent decline in Bitcoin's value is primarily attributed to heightened concerns surrounding the artificial intelligence sector. Although Wall Street experienced a technical rebound on Thursday, driven by strong earnings from Nvidia, the markets failed to sustain this positive momentum. Persistent fears regarding valuation levels, which several analysts consider stretched, quickly negated any gains made. On the macroeconomic front, expectations of the Federal Reserve maintaining interest rates in December, amid economic uncertainties, have intensified pressure on the markets. A mixed employment report from the United States, indicating both an acceleration in job growth and a rise in unemployment in September, provided little clarity. In this context, the correlation between Bitcoin and the technology sector has surged to 80%, marking a six-month high. This level raises questions about Bitcoin's traditional role as a store of value, as it increasingly behaves like a growth asset, subject to the same headwinds facing major tech companies.