Volatility in Big Tech and Fed policy concerns pushed Bitcoin’s correlation with Nasdaq to a six-month high. Traders anticipate improved liquidity amid US fiscal pressures and Trump’s tariff-focused stimulus agenda. Despite strong earnings, Nasdaq fell 4% on Thursday. Billionaire Ray Dalio warned of a bubble, advising diversification into scarce assets like gold.

Investors fear weakening economy as AI developers spend heavily on data centers. Despite positive earnings, Nasdaq dropped 7.8% since Oct. 29. Data center construction spending raises concerns about future debt. Traders step back from risk markets as uncertainty looms.

Bitcoin’s price movement closely mirrors tech sector trends amid heightened uncertainty. Correlation with tech sector hits six-month high at 80%. Traders remain cautious but not bearish below $90,000, waiting for clearer entry points. Liquidity conditions may improve as US fiscal debt problem persists and Trump pushes tariff-focused stimulus plan.

Read more at Cointelegraph: Bitcoin Drops As Investors Wonder If AI Bubble Popped