Bitcoin, Stocks to Bleed Some More, Market Analysts Say

Bitcoin and stocks are in a bout of volatility — and investors say more turbulence could be ahead.

Investors in recent weeks have increasingly shunned risky assets like AI stocks and crypto.

U.S. stocks closed lower at certain points this week, extending a recent tumble. The Dow fell 499 points, or 1.07%. The S&P 500 fell 0.83%. The tech-heavy Nasdaq Composite slid 1.21%, John Towfighi reported for CNN.

The S&P 500 closed lower for the fourth day in a row, marking its longest daily losing streak since August.

Just six weeks after notching a record high above $126,000, bitcoin has plummeted more than 26%.

The cryptocurrency on Tuesday afternoon traded just below $93,000, erasing all of its gains for this year.

Bitcoin had dipped below $90,000 late Monday for the first time in seven months before paring some losses early Tuesday.

Investors in recent weeks have increasingly shunned risky assets like AI stocks and crypto. Not helping: uncertainty about whether the Federal Reserve will cut interest rates next month.

This risk-off attitude is weighing on bitcoin, a highly speculative and volatile investment.

In Wall Street terms, bitcoin is in a bear market — defined as a price decline of more than 20% from a recent peak. Bitcoin has shed more than $600 billion in market value during its tumble, according to CoinMarketCap data.