Bitcoin drops to a one-week low after tech stocks disappoint investors

The value of bitcoin has dropped five per cent today, briefly surpassing a one-week low below $7,700 (£5,870) as investors reduced their holdings in the digital currency.

It was the fourth time in seven days that the price of bitcoin sank below $8,000 on the Luxembourg-based Bitstamp exchange, after a sell-off in technology stocks spilled over into other risky assets.

The so-called FAANG group - which includes Facebook, Apple, Amazon, Netflix and Google - have had a mixed year to date after Facebook and Netflix reported disappointing results that caused their share prices to plummet.

Latitude Investment Management-founder Freddie Lait suggested the trend of tech stocks pulling ahead in unison is "finally coming to an end" after such a polarised season.

However despite the turbulence, bitcoin is set to close July as a productive month, during which its price has increased around 20 per cent.

The cryptocurrency reached a two-month high last week, surging above $8,000.

Read more: Bitcoin hits a two-month high

"It looks like the entire market is in a risk-off mood," said eToro senior market analyst Mati Greenspan yesterday.

"It started with the [FAANG] stocks, but the mood seems to be dragging down crypto markets as well at the moment."

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