Bitcoin (BTC) experienced a brief recovery after dipping below $98,000, reaching around $101,500 by mid-day but still showing a 3% decline in the past 24 hours. This minor bounce came amid a broader market selloff, with the CoinDesk 20 Index dropping 5.6%. AI-related tokens such as Render (RNDR) and Filecoin (FIL) took notable hits, while Solana (SOL) saw a more than 10% drop as it continued to lose ground in the crypto AI space.
The rapid downturn triggered nearly $1 billion in liquidations of leveraged positions across various cryptocurrencies, according to CoinGlass data. Traditional tech stocks were also impacted, with the Nasdaq 100 falling 3%, largely driven by a 17% decline in Nvidia (NVDA), which wiped out $465 billion in market value. This price action further emphasized Bitcoin’s growing correlation with U.S. tech stocks, as noted by Standard Chartered’s Geoffrey Kendrick.
Crypto-related stocks suffered as well, with Coinbase (COIN) losing 6.7% and Galaxy Digital (GXY) dropping 15.8%. MicroStrategy, the largest corporate holder of Bitcoin, fared better with a more modest 1.5% decline.
Bitcoin mining stocks were hit hardest, with Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) seeing declines of 8.7% and 16%, respectively. Miners focused on high-performance computing and AI infrastructure, such as Core Scientific (CORZ), TeraWulf (WULF), and Applied Digital Corporation (APLD), faced even steeper drops of 25%-30%.
Aurelie Barthere of Nansen noted that the market had priced in excessive optimism around both the crypto and AI sectors, and the pullback was a natural correction.
Looking ahead, traders are keeping an eye on the Federal Reserve’s meeting and the earnings reports from major tech companies. While corporate earnings have been solid so far, the upcoming results from Nvidia and others will be key to determining whether the market can maintain its momentum.
For altcoin investors, Barthere suggested that the recent dip could present an opportunity, particularly for high-beta tokens like Solana (SOL), which have seen a more significant pullback compared to Bitcoin. This could provide a favorable entry point for those looking to capitalize on future market recovery.
