Bitcoin holds near $65,000 as $800 billion AI selloff leaves crypto largely untouched
Bitcoin hovered around $65,400 in Friday's Asian trading, barely budging despite a sharp sell-off in major U.S. technology stocks. The Magnificent Seven megacap tech stocks lost about $797 billion in market value on Thursday, dragging the S&P 500 and Nasdaq 100 lower and …
Intelligence analysis by Llama
Bitcoin held near $65,000 in Asia morning hours on Friday, barely moving while nearly $800 billion evaporated from the biggest U.S. technology stocks. The largest cryptocurrency traded at about $65,400, down less than 1% on the day and up 3% on the week.
Imagine you're at a big party with lots of people talking about the latest gadgets. Some people are really excited about a new type of computer chip, but others are more interested in a new type of artificial intelligence. Bitcoin is like a special kind of money that people use to buy and sell these gadgets. When the people at the party get excited about the computer chip, the price of Bitcoin goes up. But when they start talking about the artificial intelligence, the price of Bitcoin goes down. Recently, the people at the party got really excited about the artificial intelligence, and the price of Bitcoin went down. But this time, Bitcoin didn't go down as much as it usually does. This could be a sign that Bitcoin is starting to break away from the artificial intelligence trade and become its own thing.
Analysis
A $60B Vote of Confidence
The recent sell-off in major U.S. technology stocks has left many wondering if the crypto market will follow suit. However, Bitcoin's resilience during this equity rout hints at a possible, though unproven, decoupling. The largest cryptocurrency traded at about $65,400, down less than 1% on the day and up 3% on the week. This stability is a welcome sign for investors who have been watching the AI trade closely.
Why Cursor?
The Magnificent Seven, a colloquial term for the megacap group that has driven U.S. stocks for three years, fell 4.8% on Thursday and shed $797 billion in market value in their worst day since the tariff selloff of April 2025. The drop dragged the S&P 500 down 1.2% and the Nasdaq 100 down 1.9%, and it left the group 11% below its late-May record, erasing $2 trillion. A key trigger was AI spending. Alphabet raised its capital expenditure forecast to as much as $205 billion this year, and Tesla chief executive Elon Musk called 2026 'a massive capex year' as the company reported profits well below expectations.
The Road Ahead
Whether this is the start of a genuine decoupling or a single session remains an open question. Bitcoin's miners have rebuilt themselves as AI data-center operators, so a sustained retreat from AI spending would eventually reach them, and the connection may simply be slower to transmit than it is on the way up. But after a month in which crypto took its direction almost entirely from semiconductors, a day when the AI trade broke and bitcoin held is the first sign the two may not be joined as tightly as the rally suggested.
Key points
- Bitcoin held near $65,000 in Asia morning hours on Friday, barely moving while nearly $800 billion evaporated from the biggest U.S. technology stocks.
- The largest cryptocurrency traded at about $65,400, down less than 1% on the day and up 3% on the week.
- The Magnificent Seven, a colloquial term for the megacap group that has driven U.S. stocks for three years, fell 4.8% on Thursday and shed $797 billion in market value in their worst day since the tariff selloff of April 2025.
- A key trigger was AI spending. Alphabet raised its capital expenditure forecast to as much as $205 billion this year, and Tesla chief executive Elon Musk called 2026 'a massive capex year' as the company reported profits well below expectations.
If the AI trade continues to break, Bitcoin may be able to hold its own and not be affected as much by the sell-off. This could be a sign that Bitcoin is becoming more independent and not just following the AI trade.
However, if the AI trade continues to be strong, Bitcoin may still be affected and go down in price. This could be a sign that the connection between Bitcoin and the AI trade is still strong and that Bitcoin is not yet independent.
Market signals
- Bitcoin Bitcoin held near $65,000 in Asia morning hours on Friday, barely moving while nearly $800 billion evaporated from the biggest U.S. technology stocks.
AI-generated analysis of potential market relevance. Not financial advice.
