Bitcoin (BTC) slid to roughly $65,000 as a sweeping selloff in artificial intelligence-exposed technology stocks triggered a broad risk-off move across equities, commodities and cryptocurrencies, dragging the total crypto market capitalization down about 1.25% to $2.27 trillion.
What Happened: Tech Rout Hits Crypto
The Nasdaq Composite dropped more than 2% on Thursday as investors dumped shares of companies tied to AI amid fears that rapid advances in artificial intelligence could disrupt entire sectors, from software to logistics. The Dow Jones Industrial Average fell roughly 1.3%, or more than 650 points, while the S&P 500 shed 1.6%.
Nvidia, Meta, Amazon and Apple all posted steep losses, with Apple falling around 5%. Cisco Systems tumbled more than 12% after issuing a weak profit outlook that overshadowed rising sales linked to Big Tech's AI buildout.
Gold futures sank 3% as investors rotated into Treasuries and safe-haven currencies including the dollar and Swiss franc. BTC was recently trading near $66,151, down about 1.4% over 24 hours with trading volume around $44.23 billion.
The selloff came ahead of Friday's Consumer Price Index report, which investors are watching for signals on whether inflation is cooling enough to keep rate-cut expectations alive. Weekly jobless claims data showed a smaller decline than forecast, adding to concerns raised by a January payroll report that showed the U.S. economy adding twice as many jobs as anticipated — a combination that complicates the Federal Reserve's path on interest rates.
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Why It Matters: Crypto-Tech Correlation
The correlation between total crypto market capitalization and major equity ETFs such as the Nasdaq-tracking QQQ has climbed above 0.9 over the past 24 hours, meaning moves in technology stocks are echoing almost immediately in digital assets. That tight linkage turns every tech-sector tremor into a crypto problem.
Sentiment metrics reinforce the point.
The crypto fear and greed index has fallen to single-digit territory, a reading classified as extreme fear, and spot BTC ETF assets under management have dropped significantly over the past month — signs that institutional capital was already pulling back before Thursday's rout.
BTC dominance is holding near 58%, which suggests the decline is market-wide rather than driven by a rotation out of altcoins. Elevated derivatives open interest means further volatility spikes are possible if selling accelerates.
What happens next likely hinges more on macro signals than on any single crypto narrative. A stabilization in AI and chip stocks could allow digital assets to recover, while a deeper tech correction or a hot CPI print Friday would keep pressure on risk assets broadly.
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