As U.S. stocks fell across the board on concerns that artificial intelligence (AI) is overvalued, cryptocurrency prices are also dropping across the board.
As of 8:08 a.m. on the 7th, on CoinMarketCap, a global coin quote site, bitcoin was down 2.38% from 24 hours earlier at $101,224. Ethereum was down 3.36% at $3,304, and Ripple (XRP) was down 6.06% at $2.2.
This appears to be because institutions are pulling funds from crypto assets, with U.S. stocks broadly lower and $137 million flowing out of spot bitcoin exchange-traded funds (ETF).
The cryptocurrency fear and greed index reading of 24, indicating an avoidance of crypto assets, is also seen as a factor behind the decline. The fear and greed index is scored from 0 to 100, with 0 indicating extreme fear and 100 indicating extreme greed. A reading of 24 means it is close to extreme fear.