Bitcoin Slumps Below $65K as AI Tech Panic Spreads Across Markets
A broad risk-off move swept across equities, commodities, and cryptocurrencies on Thursday, sending Bitcoin below $65K. The selloff was triggered by a tech rout in artificial intelligence-exposed technology stocks, which saw major players like Nvidia, Meta, Amazon, and Apple posting steep losses.
The Nasdaq Composite dropped over 2% as investors dumped shares of companies tied to AI amid fears that rapid advances could disrupt entire sectors. The Dow Jones Industrial Average fell around 1.3%, or more than 650 points, while the S&P 500 shed 1.6%. Gold futures sank 3% as investors rotated into Treasuries and safe-haven currencies.
The total crypto market capitalization dropped about 1.25% to $2.27 trillion, with BTC trading near $66,151, down around 1.4% over 24 hours. Trading volume was around $44.23 billion. The correlation between total crypto market capitalization and major equity ETFs has climbed above 0.9, meaning moves in technology stocks are echoing almost immediately in digital assets.