Bitcoin's Price Plunges Amid US Stock Market Uncertainty

The cryptocurrency market has been experiencing a significant correction, with Bitcoin (BTC) price plummeting below $65,500 on Friday. This decline came after the release of wholesale inflation data in the US, which triggered increased risk aversion among investors.

According to a report from investment bank UBS, analysts downgraded US stocks due to high valuations, a weak dollar, and policy risks. Despite AI-driven earnings growth, these factors may limit the upside potential for the S&P 500 index.

Institutional adoption of Bitcoin could improve market sentiment, especially if major sovereign funds announce strategic BTC reserves. This could lead to a rotation of capital towards Bitcoin as investors seek safer assets.