Bitcoin drops to 2024 low as AI fears and geopolitics rattle markets
Market volatility intensified as investors retreated from risk assets, pressuring equities and Bitcoin while demand shifted to traditional safe havens.
A cautious mood spread across global markets as US stocks declined and Bitcoin slid to its lowest level since late 2024. Technology and software shares led losses, pushing major indices to their weakest performance in two weeks.
Bitcoin fell sharply before stabilising, remaining well below its October peak despite continued pro-crypto messaging from Washington. Gold and silver moved higher during the session, reinforcing their appeal as defensive assets amid rising uncertainty.
Investor sentiment weakened after Anthropic unveiled new legal-focused features for its Claude chatbot, reviving fears of disruption across software and data-driven business models. Analysts at Morgan Stanley pointed to rotation within the technology sector, with investors reducing exposure to software stocks.
Geopolitical tensions intensified after reports of US military action involving Iran, pushing oil prices higher and increasing market volatility. Combined AI uncertainty, geopolitical risk, and shifting safe-haven flows continue to weigh on equities and digital assets alike.
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