The “Magnificent Seven” technology giants suffered their steepest decline since April 2025 after Alphabet and Tesla raised concerns about the scale of AI-related spending. Bitcoin, however, remained relatively stable, falling less than 1%, while dogecoin recorded the largest losses among major cryptocurrencies.
Bitcoin traded near $65,000 during Friday’s Asian session, showing limited reaction as roughly $800 billion was erased from major U.S. technology stocks. The muted response marked a rare disconnect from the AI-driven market narrative that had largely influenced crypto performance throughout the month.
BTC was changing hands around $65,400, down slightly on the day but still up about 3% over the past week. Ether declined 3% to $1,879, while most large-cap tokens moved into negative territory. Dogecoin led the declines, dropping 5% in 24 hours to $0.069 and falling 4% for the week. XRP slipped 2% to $1.11, Solana lost 3% to $76, and Hyperliquid’s HYPE token fell 4% over seven days to $58. Despite the losses, crypto’s decline was modest compared with the broader equity selloff.
The Magnificent Seven, the group of mega-cap technology companies that have driven much of the U.S. stock market’s gains in recent years, dropped 4.8% on Thursday. The decline wiped out approximately $797 billion in market value, marking their worst trading day since the tariff-related selloff in April 2025.
The weakness spread across major indexes, with the S&P 500 falling 1.2% and the Nasdaq 100 declining 1.9%. The tech group is now about 11% below its late-May peak, losing roughly $2 trillion in combined market capitalization.
The selloff was fueled by concerns over escalating AI investments. Alphabet increased its capital expenditure forecast to as high as $205 billion for the year, while Tesla CEO Elon Musk highlighted 2026 as a major spending year after the company reported weaker-than-expected profits.
The announcements reinforced fears that major technology firms may be spending enormous amounts on AI infrastructure faster than the resulting returns can justify.
Those concerns have also influenced crypto markets in recent weeks. Bitcoin had largely tracked the AI investment cycle, gaining when semiconductor stocks advanced and declining when technology shares weakened.
It remains uncertain whether Bitcoin’s recent resilience signals a lasting separation from AI-driven markets or represents only a temporary divergence. The connection could eventually return, especially as many Bitcoin miners have expanded into AI-focused data-center businesses.
Still, after a month of crypto moving closely alongside semiconductor and AI stocks, Bitcoin’s ability to hold steady during a major technology selloff suggests the relationship between the two markets may be weaker than recent trends indicated.
