Bitcoin falls to $60,000 as AI trade continues to draw investor interest and capital

Bitcoin BTC$60,333.50 dropped to the $60,000 area on Wednesday for the second time this month, continuing its poor price action in the face of risk market rallies elsewhere.

Also continuing to lose ground on Wednesday were gold and oil, each falling below key levels — gold $4,000 per ounce and oil $70 per barrel.

Read more: Gold, silver and bitcoin tumble as ‘debasement’ trade unwinds

The declines in crypto, precious metals, and oil came as tech stocks rebounded following Tuesday’s modest one-day slump, with the AI trade continuing to draw investor interest and dollars.

South Korean memory chip giant SK Hynix on Wednesday filed to raise nearly $30 billion in a U.S. share offering, in what would be the overseas company capital raise since Saudi Aramco’s mammoth $26 billion sale in 2019.

The Nasdaq at midday Wednesday was up 0.8% against bitcoin’s 3.2% slump.

Bitcoin has lost the plot

Billionaire hedge fund manager Philippe Laffont succinctly summed up investor sentiment Tuesday, telling CNBC he has become “a little bit more worried” about bitcoin’s future, arguing that investors now have a wider range of opportunities to choose from than in previous years.

“I don’t know what to think about Bitcoin anymore,” he said, arguing that companies such as SpaceX (SPCX) and emerging AI firms offer growth stories that are easier to evaluate over long time horizons, while the rise of stablecoins has reduced bitcoin’s uniqueness as an alternative financial asset.