Bitcoin retreated toward last week’s lows as renewed weakness in the technology sector spilled over into digital assets, reinforcing the close correlation between crypto markets and high growth equities. After briefly recovering above the 70000 level earlier in the week, Bitcoin fell back near 65000 amid broader risk aversion.
The largest cryptocurrency declined about 2 percent over the past 24 hours, trading near 65790 during the latest session. Ether and Solana posted comparable losses, reflecting a synchronized pullback across major tokens. The decline followed sharp moves in US equity markets, where the Nasdaq index fell around 2 percent, led by steep losses in software stocks.
An exchange traded fund tracking the software sector dropped roughly 3 percent on the day and remains more than 20 percent lower year to date. Investors have grown increasingly cautious about elevated valuations in technology companies as artificial intelligence tools rapidly improve coding and automation capabilities. Concerns that AI advancements could compress margins or disrupt traditional software business models have intensified selling pressure in the sector.
Bitcoin has often traded in tandem with high beta technology names, and that relationship appeared to reassert itself during the latest downturn. Market analysts have pointed out that digital assets, particularly Bitcoin, share characteristics with growth oriented technology investments. As liquidity conditions tighten or sentiment shifts against speculative tech, crypto frequently experiences parallel moves.
The sell off was not confined to equities and digital currencies. Precious metals, which had been trading with modest gains earlier in the day, experienced sharp reversals in afternoon trading. Silver fell more than 10 percent from intraday levels, while gold declined over 3 percent. The abrupt drop in metals added to the sense of cross asset volatility, suggesting that broader portfolio repositioning may be underway.
Bitcoin’s return toward the 65000 region erases much of the rebound seen after last week’s market stress. The recent bounce had encouraged some traders to anticipate a stabilization phase, but renewed macro uncertainty has clouded short term direction. With Bitcoin still well below previous cycle highs, volatility remains elevated as participants weigh economic data, corporate earnings trends, and shifts in global risk appetite.
The interplay between artificial intelligence optimism and valuation concerns in traditional markets continues to influence digital assets. If technology stocks remain under pressure, Bitcoin may struggle to sustain upward momentum despite its unique monetary narrative. Traders are likely to monitor equity indices, dollar movements, and flows into exchange traded products for signals about whether the current pullback deepens or transitions into consolidation.
