Finance News

Story: Bitcoin Crashes 46% as AI Investment Boom Diverts Capital

By Steven Anderson

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Bitcoin crashed hard. The cryptocurrency lost 46% of its value since hitting $126,100 in October, now trading around $67,000. Markets can't agree on what's driving the selloff.

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Some traders blame quantum computing fears, worried that new tech could break Bitcoin's security.

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The quantum thing got attention recently. BlackRock mentioned quantum computing as a potential threat in its iShares Bitcoin ETF disclosure last year.

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Corallo thinks Bitcoin faces competition for investment dollars, especially from artificial intelligence.

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Bitcoin mining data backs up his theory. Mining difficulty jumped 15% to 144.4 trillion recently - the biggest increase since China banned mining in 2021.

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Network hashrate tells the story. It fell from October's peak of 1.1 zettahash per second down to 826 exahash per second as Bitcoin's price tanked.

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Mining stays tough though. Hashprice - daily revenue per unit of hashrate - sits near multi-year lows at $23.9 per petahash per second.

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And some public mining companies are jumping ship to AI. Bitfarms rebranded to focus on AI infrastructure.

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Market sentiment looks pretty grim. Glassnode says Bitcoin trades below its "True Market Mean" around $79,000, with the Realized Price at roughly $54,900.

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The Crypto Fear and Greed Index shows extreme fear among investors. But André Dragosch from Bitwise thinks Bitcoin looks undervalued compared to global money supply growth, gold,…

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Traders watch U.S. core PCE inflation data for clues about Federal Reserve policy. Higher inflation could help scarce assets like Bitcoin, but a hawkish Fed might boost the…

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MicroStrategy announced a strategic review of its crypto holdings on February 15. CEO Michael Saylor hinted at potential diversification into AI-related assets, which shows how…

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The next Bitcoin halving comes in April 2028. Halvings cut mining rewards in half, reducing new supply.

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The European Central Bank dropped a report on February 10 that called out Bitcoin's volatility.

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Fidelity Investments reaffirmed its Bitcoin commitment on February 12 through its digital assets division.

The Currency Analytics

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