Bitcoin Slumps 9% as Tech Rout Ripples Through Asian Markets

Gerik

Summary:

Bitcoin tumbled nearly 9% while Asian equities mostly weakened, as a renewed selloff in U.S. technology stocks dragged global risk sentiment lower and erased much of the optimism built earlier in the year....

Wall Street Tech Losses Set A Risk-Off Tone

Global markets moved defensively after U.S. stocks extended their losing streak, led by sharp declines in technology shares. On Thursday, the S&P 500 dropped 1.2% to 6,798.40, marking its sixth loss in seven sessions, while the Dow Jones Industrial Average fell 1.2% to 48,908.72. The Nasdaq Composite slid 1.6% to 22,540.59, underperforming as concerns intensified over whether massive investments in artificial intelligence would generate sufficient long-term returns.

Futures pointed to further weakness, with S&P 500 futures down 0.3% and Dow futures lower by 0.2%, reinforcing cautious positioning ahead of the U.S. open. The pullback reflects growing skepticism around capital expenditure-heavy AI strategies rather than a sudden deterioration in macroeconomic conditions.

Bitcoin Gives Back Post-Election Gains

Bitcoin mirrored the broader risk-off move, falling around 9% to just under $65,000 in early Asian trading. The world’s largest cryptocurrency briefly sank more than 12% on Thursday, dipping below $64,000. This decline leaves Bitcoin at roughly half its October peak above $124,000 and wipes out all gains accumulated since Donald Trump secured a second term in the White House.

The sharp retreat reflects a correlation with declining risk appetite rather than a crypto-specific shock. As enthusiasm for high-growth assets faded amid equity market volatility, leveraged positions in digital assets unwound rapidly, amplifying downside pressure.

Asian Markets Track Global Sentiment

Asian equities were mixed but broadly softer as investors digested the overnight losses on Wall Street. Japan’s Nikkei 225 rose 0.5% to 54,073.52, recovering from earlier declines, supported by gains in technology-related stocks. SoftBank Group climbed 1.9%, while chipmaker Tokyo Electron advanced 3%. Political factors also remain in focus, with Japan heading into a general election on Sunday in which Prime Minister Sanae Takaichi is seeking a stronger public mandate.

Elsewhere, South Korea’s Kospi fell 1.7% to 5,076.69, weighed down by losses in major chipmakers. Samsung Electronics slipped 0.9%, while SK Hynix declined 0.6%, reflecting continued sensitivity to global semiconductor sentiment. Hong Kong’s Hang Seng Index dropped 1.2% to 26,569.14, while mainland China’s Shanghai Composite Index was flat at 4,075.37.

In Australia, the S&P ASX 200 slid 1.6% to 8,745.60, and Taiwan’s Taiex edged down 0.2%, underscoring uneven but cautious regional trading.

AI Spending Concerns Hit Big Tech

Technology stocks bore the brunt of the U.S. selloff. Qualcomm sank 8.5% despite reporting better-than-expected quarterly revenue, highlighting how valuation concerns are overshadowing near-term earnings performance. Alphabet slipped 0.5% as investors focused on its heavy AI-related spending plans.

Amazon fell 11% in after-hours trading after announcing intentions to lift capital expenditure by more than 50% to $200 billion for AI and other initiatives. At the same time, new AI tools unveiled by Anthropic intensified fears that rapid advances in automation could disrupt traditional software services, contributing to a broader reassessment of technology sector risk.

Precious Metals And Commodities Remain Volatile

Safe-haven assets also showed instability following a months-long rally. Gold fell 1% to $4,843.70 per ounce after nearing $5,600 last week, while silver dropped 6.6% to $71.63 per ounce, extending losses after plunging more than 31% the previous Friday. These moves suggest that heightened volatility, rather than steady hedging demand, is currently dominating precious metals pricing.

In energy markets, U.S. benchmark crude rose 35 cents to $63.64 a barrel, while Brent crude gained 36 cents to $67.91, supported by modest buying interest. Currency markets were relatively subdued, with the U.S. dollar easing to 156.74 yen and the euro ticking up to $1.1789.

Overall, the synchronized pullback across equities, cryptocurrencies, and precious metals highlights a fragile market environment. The current phase appears driven less by deteriorating fundamentals and more by de-risking behavior as investors reassess valuations, liquidity conditions, and the long-term payoff of aggressive technology investment cycles.

Source: CNBC

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