Bitcoin, Ether Prices Plunge as Big Tech Stocks See Sharp Declines

Last week's AI-driven sell-off in tech stocks sent shockwaves through global markets, causing Bitcoin (BTC) and Ether (ETH) to plummet to new lows.

The sharp decline was partly driven by investors' concerns over high capital expenditures and speculative future revenues in the AI industry. As a result, Big Tech stocks like Nvidia, AMD, Intel, Micron, and SanDisk saw significant drops in value.

According to analysts, the primary reason for the selloff is broader tech-sector profit-taking, which has spilled over into crypto markets. The read on crypto markets remains tilted toward the bears, with prices falling as aggregate open interest declined.

The deleveraging indicates long traders being shaken out, following mounting investor concerns over Strategy's STRC de-peg. The company has unrealized losses of nearly $16 billion on its 847,363 Bitcoin treasury position, which has an average cost of $75,651 per BTC.