Daily Market Update: Bitcoin Drops to $62,000 as AI Trade Selloff Hits Crypto and Stocks

TLDR

• Bitcoin fell to $62,715, down 14.5% on the week, as the AI trade reversed
• Ether dropped 4.8% to $1,696 and Solana fell 5.4% to $66.51
• Broadcom’s weak AI chip outlook triggered a third day of Nasdaq declines
• US spot Bitcoin ETFs recorded 13 straight sessions of net outflows totaling $4.4 billion
• All eyes are on Friday’s US jobs report for clues on Fed policy and market direction

Bitcoin fell sharply on Friday as a broader pullback in the artificial intelligence trade hit crypto and equity markets at the same time.

Bitcoin slid to $62,715 during Asian trading hours, down 1.9% on the day and 14.5% for the week. Ether dropped 4.8% to $1,696, while Solana fell 5.4% to $66.51. Solana is now down 18.5% for the week.

The drop did not start in crypto. It started with Broadcom.

Broadcom Earnings Spark Wider Selloff

Broadcom reported its quarterly results on Wednesday. Its AI chip outlook missed expectations, ending months of gains in semiconductor stocks. That triggered a ripple effect across markets.

Nasdaq 100 futures fell 1.2% on Friday, marking a third straight day of losses. South Korea’s KOSPI dropped 4.7%. Chipmaker SK Hynix fell 8%. The MSCI Asia-Pacific index was down 1.4%.

Currency markets also came under pressure. The Korean won hit its lowest level since 2009. The Indonesian rupiah traded near a record low as foreign investors pulled money out of local bond markets.

The Indian rupee was an exception. The Reserve Bank of India announced steps to attract capital inflows, which helped stabilize the currency.

Bitcoin ETF Outflows Add Pressure

The selloff hit crypto at a vulnerable moment. US spot Bitcoin ETFs have now posted 13 straight sessions of net outflows, totaling around $4.4 billion since mid-May.

Strategy also disclosed its first Bitcoin sale since 2022 this week. The company sold 32 Bitcoin to cover dividend obligations on preferred stock. Together, these two factors have removed a key source of buying support that had held up Bitcoin for much of the past 18 months.

Hyperliquid’s HYPE had been one of the few tokens holding gains for the week. That changed on Friday. HYPE dropped 14.8% to $62.14, leaving it with just a 1.5% gain for the week.

Zcash had also been holding green earlier in the week. By Friday, it had given back its gains.

The Dow Jones Industrial Average bucked the trend on Thursday, rising to a record high. Healthcare and financial stocks led the move, even as Broadcom’s results weighed on tech.

Jobs Report in Focus

The next major event for markets is the US nonfarm payrolls report, due Friday at 8:30 a.m. ET. Economists expect payroll growth and a steady unemployment rate.

A weaker-than-expected report could revive expectations for Federal Reserve rate cuts under newly confirmed chair Kevin Warsh. That would likely push real yields lower and could send both the AI trade and crypto higher.

A stronger report could push markets lower. Until the data is released, both stocks and crypto are following the same downward path.

The post Daily Market Update: Bitcoin Drops to $62,000 as AI Trade Selloff Hits Crypto and Stocks appeared first on CoinCentral.