Bitcoin experienced a notable decline after a sell-off of major U.S. stock indices, showcasing its close correlation with the Nasdaq index.
Early on Friday, Bitcoin plummeted by as much as 6%, at one point hovering just above the crucial $80,000 support level, as investors shifted from riskier assets to more defensive options.
The leading cryptocurrency by market capitalization reached $80,548 at around 7:30 a.m. ET. This plunge to that price — its lowest since April 11 — highlights a deepening slide following widespread cascading liquidations of highly leveraged crypto positions in October.
Citi analyst Alex Saunders commented in a note to clients, 'Price action has been unimpressive across the large tokens, BTC dipping below the year-start price as long-time and larger holders of the token have become more active.' Saunders added, 'ETF flows, the main driver of BTC prices, are also drying up, adding to the short-term performance worries.'
Subsequently, Bitcoin recouped some of its losses, trading down 4% at $82,939.59, according to Coin Metrics. Overall, the cryptocurrency has dropped 12% since the week began and approximately 26% over the past month.