Bitcoin slipped below the 65000 level as a sharp selloff in artificial intelligence linked technology stocks triggered a broader risk off move across global markets. The pullback in equities spilled into digital assets and commodities, pulling total crypto market capitalization down roughly 1.25 percent to about 2.27 trillion.
The Nasdaq Composite fell more than 2 percent as investors reduced exposure to companies heavily associated with artificial intelligence development. Concerns that rapid advances in AI could disrupt established business models weighed on sentiment, particularly in software and chip related sectors. The Dow Jones Industrial Average declined around 1.3 percent, while the S and P 500 lost approximately 1.6 percent during the session.
Major technology names including Nvidia, Meta, Amazon and Apple recorded notable losses, with Apple sliding close to 5 percent. Cisco Systems dropped more than 12 percent after issuing a softer profit outlook that overshadowed optimism tied to AI infrastructure spending. The combination of weaker guidance and valuation concerns amplified pressure across growth oriented assets.
Bitcoin was recently trading near 66151, down about 1.4 percent over the past 24 hours, with daily trading volume around 44 billion. Ether and other large cap tokens also posted declines, reflecting the increasing synchronization between crypto markets and technology equities. Data shows that the correlation between total crypto market capitalization and major Nasdaq linked exchange traded funds has climbed above 0.9 in recent sessions, meaning price swings in tech stocks are rapidly echoed in digital assets.
The selloff occurred ahead of a closely watched Consumer Price Index report, which investors are monitoring for signals on the path of U.S. interest rates. Recent economic data has complicated the outlook. Weekly jobless claims declined less than expected, while January payroll figures showed the economy adding significantly more jobs than forecast. Strong labor data may limit the Federal Reserve’s flexibility on rate cuts if inflation remains sticky, adding uncertainty for risk assets.
Precious metals were not spared. Gold futures fell about 3 percent as investors rotated into U.S. Treasuries and safe haven currencies such as the dollar and Swiss franc. The broad based retreat across equities, commodities and crypto underscored a shift toward defensive positioning.
Market sentiment indicators within crypto have also weakened. The fear and greed index has dropped into extreme fear territory, and spot Bitcoin exchange traded fund assets under management have declined in recent weeks. At the same time, Bitcoin dominance remains near 58 percent, suggesting that the downturn is affecting the entire market rather than signaling a rotation out of alternative tokens. Elevated derivatives open interest points to the possibility of further volatility if selling pressure intensifies.
