By Renae Dyer

Bitcoin fell to its lowest level since November 2024 and ether reached a nine-month low Thursday as a fresh selloff in U.S. tech stocks weighed on cryptocurrencies.

Declines in tech stocks intensified Wednesday amid concerns about the impact of artificial intelligence on revenues of software businesses.

Bitcoin dropped to a low of $70,052 in Asian trade while ether fell to $2,067, LSEG data show. In European trade, bitcoin recently traded down 1.3% at $71,605 while ether traded at $2,133.

"Long liquidations and sensitivity to downside in equities and geopolitical risk have weighed on bitcoin and crypto markets," Citi strategist Alex Saunders said in a note.

Uncertainty over key U.S. crypto regulation is also keeping cryptocurrencies under pressure, he said.

The Clarity Act, which aims to create a regulatory framework for digital assets, has been held up due to a clash between U.S. banks and cryptocurrency firms over how the legislation handles interest paid on stablecoins.

Another concern for cryptocurrencies is expectations that Federal Reserve Chair nominee Kevin Warsh will want to quickly reduce the balance sheet.

"Bitcoin and other digital assets are sensitive to U.S. bank liquidity and a smaller balance sheet from a Warsh-led Fed may present additional headwinds," Saunders said.

Bitcoin and other cryptocurrencies have been underperforming for some months, although recently the selloff has deepened. Bitcoin, for example, has been on a downward trend since hitting a record high of $126,223 in October.

The weakness in cryptocurrencies reflects a number of factors, including the Fed's cautious signals about further interest-rate cuts, institutional outflows and thinning liquidity, along with stalled regulatory momentum, Deutsche Bank analysts Marion Laboure and Camilla Siazon said in a note.

In particular, there have been massive withdrawals from institutional exchange traded funds, they said, adding that U.S. spot bitcoin ETFs witnessed outflows of more than $3 billion in January, about $2 billion in December, and $7 billion in November 2025.

"These [ETFs] have seen billions of dollars flow out each month since the October 2025 downturn," the analysts said.

-Write to Renae Dyer at renae.dyer@wsj.com

(END) Dow Jones Newswires

February 05, 2026 05:24 ET (10:24 GMT)

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