Tech selloff drags crypto lower as Bitcoin nears $62K and $717M liquidations hit
US stocks opened lower as a tech-led selloff deepened, with NASDAQ 100 futures down 1.3% to 2.5%. Crypto traded in lockstep. Bitcoin fell about 2.5% to ~$62,300, while Ether dropped more than 4% to around $1,650. Altcoins saw risk unwind: $717M in altcoin liquidations forced traders out of leveraged positions.
The move traces to profit-taking in AI-related equities and semiconductors such as Nvidia and Micron. AI sentiment spilled into crypto. FET, RENDER, and TAO each fell roughly 3% to 5%. Solana also declined (~3.4%). Meme/alt weakness was sharper, with DOGE down about 6.6% over the week.
On the defensive side, privacy coins showed relative resilience. DASH and XMR each held losses under 1%, suggesting rotation within the market even as the broader tape remains risk-off.
Macro pressure also mattered. The US dollar index (DXY) climbed to multi-month highs, a typical headwind for risk assets. With BTC hovering near the $62,000 psychological level, traders may watch for either a support bounce or further downside if liquidity tightens.
Key takeaway for traders: the $717M liquidation figure signals crowded long exposure being reset by a cross-asset shock, so volatility and correlation risk are elevated in the short term.
Bearish
The article points to a cross-asset risk-off shock. A deepening tech sector selloff (profit-taking in AI-related stocks and semiconductors like Nvidia and Micron) spilled directly into crypto, pulling BTC and ETH lower and triggering heavy forced selling. The $717M altcoin liquidation figure is a concrete sign of leveraged positioning being unwound; historically, such liquidation bursts often amplify downside in the short term because volatility rises and correlated selling accelerates.
BTC is hovering near the $62,000 psychological level, which can attract dip-buyers, but in prior episodes where equities and the dollar strengthened together, crypto often struggled to sustain rebounds until macro pressure eased and liquidation pressure cleared. The stronger DXY backdrop typically adds a headwind for risk assets, limiting upside follow-through.
On the other hand, the relative resilience of DASH and XMR hints at rotation toward defensive narratives. That may help stabilize parts of the market, but it does not yet negate the broader bearish impulse driven by correlation, liquidity, and leverage reset. Net result: traders should expect elevated volatility and downside bias in the short term, with any medium-term improvement likely requiring tech/AI sentiment to stabilize and DXY to roll over.