Bitcoin (BTC) dropped below $82,000 on Thursday night, mirroring broader market declines driven by weak tech earnings and rising geopolitical tensions. The largest cryptocurrency fell 3.4% over 24 hours, trading at $81,387 as of 9:30 p.m. ET. Ethereum (ETH) lost 3.5% to $2,388, while XRP and Zcash declined 3.8% and 7.7%, respectively. Crypto liquidations reached $440.9 million, with $397 million in long positions wiped out.
The crypto downturn followed a sharp sell-off in U.S. equities, with the Nasdaq Composite closing down 2.6%, its worst session since June, and the S&P 500 falling 1.21%. Tech stocks led the decline, with Meta Platforms, Micron Technology, Nvidia, and Advanced Micro Devices all posting significant losses. The sell-off spread to Asian markets on Friday, with South Korea's Kospi and Japan's Nikkei 225 dropping 2.3% and 1.6%, respectively.
Analysts attributed the crypto market's struggles to macroeconomic pressures, including concerns over tech valuations, AI spending, and global growth uncertainty. Dominick John of Zeus Research noted that escalating U.S.-Iran disputes and weak tech earnings are reducing risk appetite. Rick Maeda of Laevitas described crypto as trading like a high-beta tech position, citing Meta's AI financing as a key driver.
Market participants are now watching whether $80,000 will hold as support, along with ETF flows and potential volatility in equities or oil. Dan Khus of LVRG Research highlighted Friday's S&P Global Flash U.S. Manufacturing PMI as a potential influencer of growth expectations and rate-cut sentiment.