Bitcoin falls below $71,000 as AI-fueled tech selloff deepens

The slide followed heavy losses in Asian and U.S. technology stocks, as fears that AI investment may be peaking—alongside stretched valuations and slowing earnings growth—pushed investors away from risk assets.

What to know:

• Bitcoin dropped as much as 7.5% during Asian trading on Thursday, falling below $71,000 as a global tech-led selloff spilled over into crypto markets.
• The move came after sharp declines in Asian and U.S. tech shares, driven by concerns over cooling AI spending, elevated valuations, and weakening earnings momentum.
• Bitcoin’s latest fall, alongside steep losses in silver and gold, highlights its behavior as a high-beta risk asset. Thin liquidity and rising macro uncertainty have amplified price swings, pointing to fragile investor conviction rather than a definitive trend reversal.

Bitcoin fell below the $71,000 threshold during Asian trading on Thursday as a renewed global selloff in technology stocks spilled over into crypto markets, dampening hopes of a sustained recovery after last week’s sharp volatility.

The world’s largest cryptocurrency dropped as much as 7.5% over the past 24 hours, briefly touching lows near $70,700 before trimming some losses, according to CoinDesk data.

The decline followed steep losses across Asian equity markets, where rising concerns about slowing artificial intelligence spending, elevated valuations, and weakening earnings momentum pushed investors further away from risk assets. MSCI’s Asia technology index fell for the fifth time in six sessions, led by a roughly 4% drop in South Korea’s Kospi as AI-linked heavyweight stocks came under pressure.

Weakness in Asia followed a selloff in U.S. markets, where the Nasdaq slid after underwhelming earnings from companies including Alphabet, Qualcomm, and Arm reinforced fears that the AI investment cycle may be peaking sooner than expected.

Bitcoin has increasingly behaved like a high-beta risk asset during equity-driven downturns, particularly when liquidity is thin and macroeconomic uncertainty intensifies.

The latest slide comes after choppy price action earlier in the week, when bitcoin dropped toward $73,000 before rebounding above $76,000—moves that signaled fragile investor conviction rather than a decisive trend reversal.

Pressure was exacerbated by sharp moves in commodities. Silver plunged as much as 17%, while gold fell more than 3%, extending a severe unwind that has already triggered significant liquidations in tokenized metals products across crypto trading platforms.

Sources: Shaurya Malwa