Bitcoin tumbles back near last week's lows as AI fears crush tech and precious metals plunge

Bitcoin (BTC) dropped back toward $65,000, erasing recent gains above $70,000, as it resumed its slide in tandem with weakness across the broader technology sector. This decline mirrored the Nasdaq's 2% drop, with the iShares Expanded Tech-Software Sector ETF (IGV) tumbling 3% year-to-date, as investors become skeptical of high valuations amid rapidly advancing AI coding capabilities. Macro strategist Jim Bianco noted the strong correlation, stating that crypto is another form of software facing similar pressures. Precious metals were also hit hard, with gold and silver experiencing steep plunges late in the session. Separately, Ark Invest's Cathie Wood argued that Bitcoin will thrive amid potential "deflationary chaos" caused by exponential technologies like AI, positioning BTC as a trustless alternative to debt-based financial systems stressed by productivity-led deflation.

(Source：CoinDesk)