Risk-off wave drags bitcoin below $63,000 as AI selloff spreads from stocks to crypto
Bitcoin prices fell below $63,000 as part of a broader market selloff affecting global stock indices and tech sectors. Analysts attribute the decline to a combination of AI sector fatigue, geopolitical tensions in the Middle East, and a general risk-off sentiment among investors.
Why it matters
The correlation between crypto assets and traditional equity markets underscores how macroeconomic instability and geopolitical events now drive volatility across all asset classes.
The selloff is not isolated to crypto. Nasdaq 100 index futures dropped 1.91% and S&P 500 futures slipped 0.96%, pointing to macro forces driving the move rather than anything crypto-specific. Japan’s Nikkei 225 index dropped 4%, while South Korea’s Kospi stock exchange was closed for Constitution Day.
In a a classic risk-off rotation, the Dollar Index (DXY) rose to 100.75 while gold advanced 0.61% to climb back above $4,000.
The move to the downside can be attributed to a selloff in tech stocks across North America and Asia, as well as mounting tensions in the Middle East.
"The market is ending the week with two bruises: AI fatigue and Hormuz heat,” said Patrick Munnelly at Tickmill Group. “The semiconductor selloff has gone from profit-taking to position-clearing, dragging Asia toward its worst levels in months.”
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