TLDR
- Bitcoin dropped less than 1% to around $65,400 while tech stocks lost $797 billion in market value
- The Magnificent Seven fell 4.8% on Thursday, their worst day since April 2025
- Alphabet and Tesla flagged heavy AI spending, spooking investors
- Tesla fell nearly 15%, Alphabet dropped 7.1% after earnings reports
- New Trump tariffs on 60 trading partners added extra pressure on markets
Bitcoin held near $65,400 on Friday during Asian trading hours, barely moving while nearly $800 billion was wiped from major U.S. technology stocks. It was down less than 1% on the day but still up 3% on the week.
Other cryptocurrencies fared worse. Ether fell 3% to $1,879, XRP dropped 2% to $1.11, and Solana lost 3% to $76. Dogecoin was the hardest hit, falling 5% on the day to $0.069. Hyperliquid’s HYPE slipped 4% over seven sessions to $58.
The losses were modest compared to what happened in stocks.
The Magnificent Seven — the group of megacap tech companies that have driven U.S. markets for three years — fell 4.8% on Thursday. That erased $797 billion in a single day, their worst performance since the tariff selloff of April 2025.
The S&P 500 dropped 1.2% and the Nasdaq 100 fell 1.9%. The group now sits 11% below its late-May record, with $2 trillion erased from that peak.
Alphabet and Tesla Earnings Triggered the Selloff
The trigger was earnings. Alphabet raised its capital expenditure forecast to as much as $205 billion for 2026. Tesla chief executive Elon Musk called 2026 “a massive capex year” while the company reported profits well below expectations.
Tesla fell nearly 15% after the report. Alphabet lost 7.1%. Both stocks steadied somewhat in after-hours trading.
The reports fed a growing worry on Wall Street: that Big Tech is spending hundreds of billions on AI infrastructure faster than the returns can justify.
That same worry has been driving crypto markets all month. Bitcoin had been rising when chip stocks rallied and falling when they slipped, acting more like an AI proxy than an independent asset.
A Possible Shift in Correlation
Friday’s session was different. The AI trade cracked and Bitcoin held. Whether that represents a genuine decoupling or just one quiet session is still unclear.
Bitcoin miners have increasingly rebuilt themselves as AI data center operators. A long-term pullback in AI spending would likely reach them eventually, just more slowly.
Beyond earnings, markets also faced pressure from new Trump tariffs on 60 trading partners, including the UK, China, Japan, and India, with rates ranging from 10% to 12.5%. Oil prices also surged after Houthi forces attacked Saudi tankers and declared a naval blockade, raising inflation concerns ahead of next week’s Federal Reserve meeting.
The Fed is widely expected to hold rates steady. Microsoft and Meta are due to report earnings next Wednesday, with Apple and Amazon following on Thursday.
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