Bitcoin Price Falls to $95K, Lowest Since May, Tracking Magnificent 7 Decline

After breaching the $100k barrier yesterday, selling momentum is continuing to affect Bitcoin. The world's largest cryptocurrency has slipped back to its lowest point in six months. 

Bitcoin fell below $95,000 today, marking its lowest price per coin since May. The drop pushes $BTC further into bearish territory, as it now trades more than 20% below its October all‑time high.

The currency is currently trading at $95,580 on the Coinbase exchange, under a near 3% decrease over the last 24 hours. These recurring losses are adding up, as BTC is now seeing a 7% decline in the week, and a near 15% fall over the last month. 

Weak U.S. Demand Signals Investor Caution

While it's hard to determine what is causing this crash, one of the reasons may rest on the idea that U.S. demand for crypto is weak. Since late October, the Coinbase Bitcoin Premium Index has consistently shown negative readings, indicating that Bitcoin has been trading at a discount on Coinbase compared to other global exchanges.

This suggests that U.S.-based investors are showing less appetite for crypto, even if stocks have remained relatively stable.

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Decoupling From the S&P 500

While crypto and the S&P 500 had been trading somewhat similarly at the start of the week, digital assets "decoupled" from that ranging trend on November 11.

Instead, the market-leading cryptocurrency appears to be reacting more closely to the "Magnificent 7" stocks, the group of the leading tech firms including Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla. YMAG, an ETF designed to generate income from options on the Magnificent 7 stocks, is mirroring some of the momentum seen by BTC. 

Bitcoin's Correlation With Tech’s Magnificent 7

Unsurprising, the November 11 "decoupling" from the S&P 500 coincided with a significant dip in Nvidia's stock 
(NVDA), when Softbank sold its entire stake in the chipmaker, triggering a tumble in the stock market, and major liquidations over at the digital assets landscape. 

Even still, the losses are felt harder over at the Bitcoin market, as YMAG is down by around 3% in the last five days, while BTC is collecting losses of over 10%.

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What's Causing The Magnificent 7 Dip?

The sector is still feeling the effects of the SoftBank NVDA sell-off. This move likely triggered a wave of profit-taking in tech stocks, as investors have been trimming their positions in light of what's to come. 

And what is to come? That's the thing, no one really knows. 

AI investments are still through the roof, with several companies pledging to continue expanding infrastructure. Yet, rising capital expenditures and stretched valuations can raise concerns about whether near-term earnings can keep pace. 

Likely even more significant, the uncertainty about the next interest rate cut decision in December is leaving markets "blind" about what to expect in the short term. Current rate cuts are basically a "toss-up", as FOMC members show more signs of a split about what the Committee's next step should be.

With the December FOMC meeting outcome still uncertain and U.S. institutional demand showing no signs of recovery, Bitcoin may face continued pressure in the near term. Traders would benefit from keeping a close eye on how tech stocks behave in the coming days, as crypto is likely to react similarly. 

And while the "best-case scenario" would be to reach closer to $110k by December, remaining close to $100k would also serve as a critical psychological support level for investors.