AI Whiplash Dents Crypto as August Looms

The market experienced a brief relief rally on Thursday, but it was short-lived. Samsung and SK Hynix surged about 25% after South Korea's KOSPI index rebounded from a 25% plunge over weeks of selling.

The bounce evaporated by Friday, and crypto followed suit, with Bitcoin dropping below $63K and shedding 3% in the past 24 hours. Ethereum declined 2.8%, while Solana and XRP fell 2% and stayed steady respectively.

The AI sector's weakness has tightened its correlation with crypto, drawing from the same pool of speculative capital. When institutional money gets nervous about Nvidia or Samsung, that anxiety spills over to digital assets within hours.