Crypto markets are experiencing a significant pullback during the U.S. morning hours on Thursday, quickly reversing the impressive gains seen the previous day. Bitcoin (BTC) has slid back to just under $67,000, having recorded a decline of more than 4% after briefly surpassing the $70,000 mark late on Wednesday. Similar downward trends are evident in other major cryptocurrencies, with Ether (ETH) and Solana (SOL) also facing noticeable declines.
This selloff coincides with a 2% drop in the Nasdaq index, triggered by reactions to Nvidia’s (NVDA) recent earnings report. While Nvidia’s financial results did not disappoint, market participants appear to be engaging in profit-taking following the stock’s substantial rally leading up to the earnings announcement. Nvidia’s stock is down 4.8%, dragging down several associated companies including Broadcom (AVGO), Micron (MU), and Intel (INTC), which have all seen sharp declines.
Interestingly, while traditional tech stocks are struggling, software companies are performing well today. The Software Sector ETF (IGV) has gained over 2%. Historically, Bitcoin’s correlation with this segment has been noted, yet it seems that BTC’s price tends to react more favorably when the software sector is declining.
In the broader context of cryptocurrency stocks, Coinbase (COIN) is down 1%, MicroStrategy (MSTR) has fallen by 2.3%, and Galaxy Digital (GLXY) has dropped 3%. However, Circle Financial (CRCL), a stablecoin issuer, is bucking the trend with a 3.3% increase, marking a remarkable two-day gain of approximately 40% following its recent earnings report.
