Bitcoin fell sharply on Thursday as the cryptocurrency market joined a broader selloff in U.S. technology stocks, with investor sentiment rattled by concerns over rising artificial intelligence spending. The world’s largest digital asset dropped more than six percent in a single day, briefly touching levels near 83750 before stabilizing slightly above that mark. The decline reversed what had been a relatively quiet week for bitcoin and quickly dragged down the wider crypto complex. Ethereum, XRP, and Solana all posted comparable losses, reinforcing the perception that digital assets remain tightly linked to broader risk markets. The move came despite no major crypto specific catalyst, underscoring how macro driven positioning continues to dominate price action during periods of heightened uncertainty.
The selloff coincided with weakness across major U.S. technology shares after earnings disclosures highlighted the scale of investment being poured into artificial intelligence. Investors grew uneasy that spending commitments may be running ahead of near term returns, prompting a pullback in some of the market’s most influential stocks. Bitcoin has historically shown a tendency to trade in line with technology equities during risk off episodes, and the latest decline reflected that dynamic once again. While some long term holders continue to view bitcoin as a distinct monetary asset, the broader market still tends to treat it as part of the growth and innovation trade. As a result, shifts in sentiment toward large technology companies often spill quickly into crypto prices.
The sharp move lower triggered heavy liquidations across derivatives markets as leveraged traders were forced out of bullish positions. Hundreds of millions of dollars in futures bets were unwound within hours, amplifying downward pressure and increasing volatility. The episode highlights how sensitive crypto markets remain to sudden changes in risk appetite, particularly when leverage is elevated. With monetary policy signals largely unchanged, attention is now focused on upcoming earnings from other major technology firms and whether broader equity markets can regain footing. Until confidence improves around growth spending and returns, bitcoin and other digital assets may continue to trade as extensions of the tech sector rather than independent safe haven assets.
