Bitcoin Falters Below $63,000 as Tech Sector Demand Weakens

Bitcoin (BTC-USD) has failed to regain momentum after declining below $63,000, marking its third consecutive session in negative territory. The downturn follows a noticeable retreat in investment interest from technology sector participants, who have historically driven Bitcoin's price movements during periods of market optimism. This shift coincides with broader macroeconomic caution and reduced equity allocations in high-growth tech stocks. The correlation between tech sector performance and digital asset valuations has grown increasingly evident, particularly in the past 12 months. Since early December, the Nasdaq Composite has dropped 4.3%, while Bitcoin has lost 6.8% over the same period. Ethereum (ETH-USD) has followed suit, slipping 7.5% and trading near $3,250, underscoring a broader liquidity pullback in risk-sensitive asset classes. Market analysts note that the weakening appetite is not solely due to macroeconomic headwinds but also reflects a strategic reallocation by institutional investors. Data from on-chain analytics platforms show a 17% decline in Bitcoin inflows to U.S.-based crypto exchange-traded funds (ETFs) over the past three weeks, while outflows from tech-focused hedge funds rose by 12%. This suggests a deliberate shift away from speculative digital assets tied to tech sentiment. The ongoing stagnation in Bitcoin and Ethereum prices is impacting investor confidence across the broader crypto ecosystem. Stablecoin issuance has slowed, with USDC and USDT minting volumes down 14% week-over-week, indicating reduced trading activity and risk-taking behavior. Market participants are now closely monitoring upcoming Fed commentary and Q4 earnings reports for signs of renewed confidence.