The current "crypto bloodbath" is not happening in a vacuum; it is part of a broader sell-off in the global technology sector. Concerns over heavy capital spending in the AI industry and softer-than-expected labor data have weighed on risk sentiment across all asset classes. Because Bitcoin and major altcoins are often traded by the same algorithmic funds that handle tech stocks, the correlation between the Nasdaq and the crypto market has reached a 16-month high. This "macro-driven" crash means that crypto prices are being moved by factors far outside the blockchain ecosystem. For a true decoupling to occur, the crypto market needs to demonstrate unique utility that isn't dependent on the general tech cycle. Until the volatility in the equity markets subsides, crypto investors should expect continued "mirroring" of the larger tech indices in their daily charts.
