Crypto market drops as Nasdaq tech selloff spills into digital assets

The cryptocurrency market experienced a significant downturn on May 13, 2024, as a selloff in the Nasdaq technology index extended to digital assets. Bitcoin saw a 2.5% decrease, falling to $62,300, while ether experienced a steeper decline of over 4%. This market correction was exacerbated by approximately $717 million in liquidations, which amplified losses across various altcoins. The broader tech sector's performance, particularly major technology stocks, often influences investor sentiment towards riskier assets like cryptocurrencies. Analysts noted that the correlation between tech stocks and digital assets has become increasingly pronounced, suggesting that macroeconomic factors impacting traditional markets are now directly affecting the crypto space. The liquidations occurred across both long and short positions, indicating widespread deleveraging as prices fell. This event highlights the interconnectedness of global financial markets and the sensitivity of the crypto market to broader economic trends.