Digital assets declined more sharply than bitcoin amid a global tech stock rout. Apple's shares fell 6.1% after the company announced price increases for its Macs, iPads, and home devices, raising fears that rising component expenses could dampen the momentum in memory chips that has been driving the AI sector. This weighed on risk assets, dragging cryptocurrencies lower.
South Korea's Kospi index plunged up to 9%, leading to its second trading halt this week, with chip giants SK Hynix and Samsung each sliding over 8%. Nasdaq 100 futures declined 1.5%. Meanwhile, Brent crude dipped under $74 per barrel after a rocket attack on a ship in the Strait of Hormuz temporarily reignited supply worries.
Gabe Selby, who leads research at CF Benchmarks, attributed the decline to large holders offloading substantial positions into a market unable to easily absorb the additional supply. "Much of the new money and investor attention has flowed into AI plays lately, leaving crypto fighting for a smaller share of overall risk appetite," Selby said in an email to CoinDesk. He described the move as "a broad market cooldown rather than anything broken in crypto itself."
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
XRP dropped 4.9% to $1.03, an 8.5% weekly loss. Dogecoin slid 3.8% to $0.074, down 9.8% in seven days. Solana fared better, down just 1.2% at $68. Hyperliquid's HYPE fell 5.4%, while Tron was the only gainer, rising 0.4%.
Selby sees the current price zone as a historically important support level. He added that $55,000 is the key support to monitor on the downside, while $61,000 to $62,000 is the range bulls must recapture. "Keep position sizes sensible," Selby advised.
The simultaneous decline in both crypto and tech equities highlights the current market's sensitivity to macroeconomic headwinds. Investors are closely watching the Federal Reserve's next moves on interest rates, as tighter monetary policy tends to reduce liquidity available for speculative assets. Additionally, geopolitical uncertainties, such as the rocket attack near the Strait of Hormuz and ongoing trade tensions, continue to weigh on sentiment.
This selloff comes amid a broader rotation away from risk assets, as investors shift focus to AI-related plays that have drawn significant capital this year. The close correlation between tech stocks and cryptocurrencies highlights how macro factors - such as rising component costs and supply-chain disruptions - can pull both markets lower simultaneously. With bitcoin hovering near the $58,000-$60,000 zone, traders are watching closely to see if historical buying patterns hold.
This downturn reflects a broader shift in investor sentiment, with the tech-heavy Nasdaq facing pressure from rising costs and geopolitical tensions.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass