When tech giants stumble, the shockwaves don’t stop at stocks — crypto feels it too.
Asian markets opened under pressure as technology stocks slid across the region, echoing weakness from Wall Street’s Nasdaq. The trigger was clear: earnings from major US tech players failed to justify the sky-high expectations built around artificial intelligence. As optimism around AI-driven growth cooled, investors moved quickly to reduce risk — and crypto paid the price.
Japan’s Nikkei fell over 1%, led by heavy losses in tech and semiconductor names. SoftBank dropped sharply as doubts grew over whether its aggressive AI bets can deliver near-term returns. Hong Kong tech stocks followed the same path, while mainland China showed only brief resilience amid uncertainty around stimulus and regulation. The message from markets was unified: vision alone is no longer enough — investors now demand profits.
This shift hit cryptocurrencies directly. Over the past 18 months, Bitcoin and large-cap digital assets have become tightly linked to tech stocks, effectively trading as high-beta extensions of the Nasdaq. With the Nasdaq sliding, crypto markets dropped as well, triggering a wave of liquidations. Leveraged positions were flushed out as key levels broke, reinforcing downside pressure.
Despite extreme oversold conditions flashing on technical indicators, sentiment remains fragile. Oversold does not guarantee a reversal — especially without a clear catalyst. Even institutional developments, such as strong ETF inflows into XRP, have failed to translate into sustained price strength, raising broader concerns about altcoin momentum.
Crypto’s role as a hedge has also weakened. Instead of behaving like digital gold, it is increasingly viewed as a leveraged tech bet — rising with liquidity and falling hard when risk appetite fades. With attention now turning to central bank policy, particularly the Bank of Japan, markets remain sensitive to any sign of tighter liquidity.
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