**Bitcoin Faces Correction Amid Market Uncertainty**
After nearing $68,000 on July 22, Bitcoin (BTC) saw a 6% drop over three days, wiping out the previous week's gains. Despite this, the $64,000 support level held strong, signaling some bullish resilience.
- **Market Cap Defense**: Buyers defended Bitcoinโs market cap at $1.25 trillion, surpassing the UK's British pound at $1.15 trillion.
- **Stock Market Correlation**: Bitcoin's decline mirrored a 4.9% drop in Nasdaq futures, raising questions about the link between tech stock performance and cryptocurrency.
- **AI Sector Impact**: Semiconductor and AI-related stocks, including Crowdstrike and Intel, saw significant declines, reflecting concerns over AI investment profitability.
- **Macroeconomic Data**: Strong US economic growth and declining jobless claims suggest the Federal Reserve's anti-inflation measures are working, potentially reducing Bitcoin's appeal as an inflation hedge.
- **Legal Concerns**: A class-action lawsuit against Bitfinex and Tether over alleged market manipulation is progressing, though it's unlikely to impact Bitcoin prices immediately.
Overall, Bitcoin's recent dip is influenced by robust economic indicators and AI investment skepticism. Investors should stay informed and cautious.
