Bitcoin retreated toward last week’s lows as renewed weakness in technology stocks and sharp declines in precious metals weighed on broader risk sentiment. The largest cryptocurrency erased most of its recent recovery above 70000 and traded back near the 65000 level, reflecting a resurgence in correlation between digital assets and the software sector.
Over the past 24 hours, Bitcoin fell around 2 percent, while other major tokens such as Ether and Solana recorded similar percentage declines. The pullback followed a brief stabilization phase after last week’s crypto market turbulence, suggesting that investor confidence remains fragile amid macro and sector specific concerns.
The renewed sell off closely tracked moves in the Nasdaq, which dropped roughly 2 percent during the session. Software stocks were particularly under pressure, with the iShares Expanded Tech Software Sector ETF sliding about 3 percent and extending its year to date losses. Market participants have increasingly questioned high valuation multiples across the software industry as advances in artificial intelligence reshape expectations around productivity, margins, and long term competitive dynamics.
Some macro strategists argue that cryptocurrencies are behaving much like high growth technology equities, especially during periods of heightened volatility. The concept of programmable money has often been compared to software infrastructure, reinforcing the narrative that crypto assets trade as part of the broader innovation complex. When technology shares face sustained selling, digital assets frequently mirror that weakness as liquidity conditions tighten and risk appetite declines.
Adding to the market’s unease was a sudden and sharp reversal in precious metals. Gold and silver, which had posted modest gains earlier in the day, experienced abrupt afternoon drops. Silver plunged more than 10 percent to around 75.08 per ounce, while gold declined over 3 percent to approximately 4938. The synchronized decline across digital assets, equities, and metals highlighted a broad risk off move rather than a sector isolated event.
Investors continue to monitor how artificial intelligence driven disruption may impact established technology business models. As AI tools demonstrate expanding capabilities in coding and automation, concerns have emerged that traditional software revenue structures could face structural pressure. This shift in sentiment has contributed to volatility in growth oriented equities, indirectly affecting crypto markets through overlapping investor bases and capital flows.
Bitcoin remains significantly below its prior cycle highs and continues to trade within a wide but fragile range. Technical traders are watching whether the 65000 zone holds as support or if further downside momentum develops should equity weakness persist. With correlations between crypto and technology stocks once again strengthening, short term price direction may hinge on broader market stability and investor confidence across the innovation sector.
