What happened: Bitcoin (BTC-USD) dropped 4% on Tuesday to hover above $62,000 per token.
What’s behind the move: The world’s largest cryptocurrency sank along with the rest of the overall market as tech-led stocks fell. Bitcoin’s trajectory this week has mostly followed the major averages, particularly the tech sector.
The token turned lower overnight “as investors seem keen to cut their risk exposure all round,” noted David Morrison, senior market analyst at Trade Nation.
” As things stand, it looks vulnerable to further weakness should investors continue to reduce their equity holdings,” he added.
What else you need to know: Bitcoin has struggled to make a comeback this year, with strategists warning a cyclical bear market for cryptocurrencies may not be over.
Bitcoin has underperformed broader markets since the March 30 market lows. The token briefly fell to $60,000 in early June.
The token is down 28% year-to-date and roughly 50% from its all-time high in early October.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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