Bitcoin Dives as AI Frenzy Fizzles: The Spectacle

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Markets

What to know:

  • Bitcoin tumbled as much as seven and a half percent in Asian trading, slipping below the venerable $71,000, while a global exodus from technology stocks poured into our crypto salon with the grace of a peacock at supper.
  • The decline followed sharp losses in Asian and U.S. tech shares, where fears that AI investments have soared too high, valuations stretched and earnings slowed have driven even the boldest investors from risk’s glittering stage.
  • Bitcoin’s latest drop, coupled with dramatic dives in silver and gold, reveals its nature as a high-beta courtier amid thin liquidity and mounting macro uncertainty, where recent swings whisper fragile conviction rather than a decisive reversal of the plot.

In the Asian hours of Thursday, Bitcoin slid below the sacred $71,000 as a renewed rout in global technology stocks poured into crypto markets, undercutting hopes of a lasting rebound after last week’s volatility.

The world’s largest cryptocurrency fell as much as 7.5% over the past 24 hours, brushing near $70,700 before trimming some losses, according to CoinDesk data.

The move followed sharp declines in Asian equities, where fears that artificial intelligence spending has grown too grand, valuations stretched, and earnings momentum slowed pushed investors away from risk assets.

MSCI’s Asia tech index sagged for a fifth time in six sessions, led by steep losses in South Korea’s Kospi, which dropped around 4% as heavyweight AI-linked stocks reeled under pressure.

The weakness followed a Nasdaq slide in U.S. trading, where disappointing earnings from firms such as Alphabet, Qualcomm and Arm sharpen the fear that AI investments may peak faster than expected.

Bitcoin, lately, has traded as a high-beta risk asset during equity-led drawdowns, particularly when liquidity is thin and macro uncertainty rises.

The latest drop comes after Bitcoin briefly whipsawed earlier this week, falling toward $73,000 before rebounding above $76,000-a sight more of fragile conviction than a clean trend reversal.

Pressure was compounded by sharp moves in commodities. Silver plunged as much as 17% and gold fell over 3%, extending a brutal unwind that has already triggered heavy liquidations in tokenized metals products on crypto venues.

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2026-02-05 07:43