During the early hours of Thursday in Asia, Bitcoin dipped below the $71,000 threshold as a fresh wave of sell-offs in global tech stocks impacted cryptocurrency markets, dampening expectations for a sustained recovery following last week’s fluctuations.
The leading cryptocurrency experienced a decline of up to 7.5% within the last day, reaching lows around $70,700 before recovering some ground based on data from CoinDesk.
This downturn coincided with significant drops in Asian stock markets. Concerns regarding artificial intelligence investments, inflated valuations, and diminishing earnings growth led investors to shy away from riskier assets.
The MSCI Asia tech index recorded its fifth decline out of six sessions. This was primarily driven by substantial losses in South Korea’s Kospi index, which fell approximately 4%, particularly affecting major AI-related stocks.
This trend followed a downturn in the Nasdaq during U.S. trading hours where disappointing quarterly results from companies like Alphabet, Qualcomm, and Arm heightened fears that AI spending might be peaking sooner than anticipated.
Bitcoin has increasingly behaved like a high-risk asset correlated with equity market declines—especially during periods of low liquidity and rising macroeconomic uncertainty.
The recent drop comes after Bitcoin had shown volatility earlier this week; it briefly fell towards $73,000 before bouncing back above $76,000—a reflection of weak conviction rather than a definitive trend reversal.
Adding to the pressure were drastic shifts in commodity prices; silver plummeted by as much as 17%, while gold saw over a 3% decrease—this marked an intense unwinding that has already resulted in significant liquidations within tokenized metal products on crypto exchanges.