Bitcoin fell below the 65000 level as a sharp selloff in artificial intelligence linked technology stocks triggered a broader retreat across global risk assets, highlighting the growing correlation between crypto markets and major equity benchmarks.
The decline followed heavy losses on Wall Street, where the Nasdaq Composite dropped more than 2 percent amid renewed concerns that rapid advances in artificial intelligence could disrupt corporate earnings and business models across multiple sectors. The Dow Jones Industrial Average lost over 650 points while the S&P 500 fell around 1.6 percent, reflecting a broad based shift toward risk aversion.
Major technology names including Nvidia, Meta, Amazon and Apple recorded notable declines, with Apple sliding roughly 5 percent. Cisco Systems posted one of the steepest losses after issuing a weaker than expected profit outlook, overshadowing optimism around artificial intelligence related revenue growth. The pullback in large cap tech stocks weighed heavily on investor sentiment.
Bitcoin was recently trading near 66100 dollars, down about 1.4 percent over 24 hours, while total crypto market capitalization slipped roughly 1.25 percent to around 2.27 trillion dollars. Trading volumes remained elevated, suggesting active repositioning rather than thin liquidity. Gold futures also fell as investors rotated toward US Treasuries and safe haven currencies such as the dollar and Swiss franc.
The market turbulence came ahead of closely watched US inflation data. Investors are monitoring the upcoming Consumer Price Index release for signals on whether inflation is cooling sufficiently to support expectations for future Federal Reserve rate cuts. Recent labor market data has complicated that outlook, with payroll growth exceeding forecasts and weekly jobless claims declining less than anticipated.
Analysts point to a tight linkage between technology equities and digital assets. Correlation metrics between total crypto market capitalization and Nasdaq tracking exchange traded funds have climbed significantly in recent sessions, indicating that movements in technology stocks are quickly mirrored in cryptocurrencies. As institutional participation in both asset classes has grown, macro driven risk sentiment has become a shared driver.
Market indicators suggest heightened caution. The crypto fear and greed index has moved into extreme fear territory, reflecting subdued investor confidence. Assets under management in spot Bitcoin exchange traded funds have also declined over recent weeks, signaling that some institutional capital has stepped back during the downturn.
Bitcoin dominance remains near 58 percent, implying that the pullback is broadly distributed across the market rather than concentrated in smaller tokens. Elevated derivatives open interest adds the potential for increased volatility if selling pressure intensifies.
With macroeconomic data and technology sector performance setting the tone, digital assets appear increasingly sensitive to developments beyond the crypto ecosystem itself.
