Crypto and tech stocks drop as Bitcoin falls 2% in a week

Cryptocurrencies and tech stocks have faced a holiday season downturn, with Bitcoin (CRYPTO:BTC) losing 2% over the past week.

Bitcoin briefly showed potential with a 0.8% daily gain on Sunday, despite lower trading volumes.

Ethereum (CRYPTO:ETH) outperformed slightly, recording a 1.5% daily rise driven by earlier weekly gains.

Meanwhile, BNB (CRYPTO:BNB) surged by 11.5% over the week, Solana (CRYPTO:SOL) rose by 8%, and Toncoin (CRYPTO:TON) climbed 11%.

Conversely, Fantom (CRYPTO:FTM), Ethena (CRYPTO:ENA), and Ondo (CRYPTO:ONDO) experienced declines after strong rallies earlier in December.

This cooling pattern also affected tech stocks like Nvidia, which had been on an upward trend for the past two months.

Analysts attribute the downturn to steep valuations before the holidays and the impact of rising energy prices.

Bitcoin miners, burdened by high energy costs throughout the year, increased selloffs in December, further pressuring Bitcoin prices.

The correlation between Bitcoin and tech stocks has become more pronounced, with Bitcoin's 30-day correlation to the Nasdaq Composite exceeding 70% since July.

This linkage is reflected in the simultaneous dip across both markets.

“There’s been a Bitcoin miner selloff amid rising energy prices all year,” analysts noted, with the trend intensifying during the holiday season.

While the year-end decline has tempered expectations for a traditional Santa Claus rally, three trading days remain in the year.

Investors remain hopeful for a potential shift before the new year begins.

At the time of reporting, the Bitcoin price was $93,378.70.