Tech Sell-Off Hammers Wall Street as Bitcoin Crashes Below $73,000
Nvidia and Microsoft lead losses in brutal session; crypto hits 16-month low
The tech-heavy Nasdaq led the decline, with shares of Nvidia, Microsoft, and other major AI companies tumbling on concerns about elevated valuations and questions about the pace of AI monetization.
Bitcoin's plunge below $73,000 marks a significant retreat from its highs, reflecting broader risk-off sentiment across financial markets. The cryptocurrency has now given back much of its post-election gains.
The Australian share market is expected to follow Wall Street lower when trading opens, extending recent volatility across global markets. Analysts point to multiple factors including uncertainty around trade policy and concerns about corporate earnings growth.
Analysis
Why This Matters
The simultaneous sell-off in tech stocks and cryptocurrency suggests a broader de-risking event, not sector-specific concerns. This could signal the beginning of a larger correction in risk assets.
Background
Tech stocks have surged over the past two years on AI enthusiasm, with some valuations reaching historically stretched levels. Bitcoin similarly benefited from optimism around crypto-friendly policies.
Key Perspectives
Bulls argue this is healthy consolidation after extended gains. Bears warn that the easy money in AI and crypto may be over.
What to Watch
Upcoming earnings reports from major tech companies will be critical. Watch support levels around $70,000 for Bitcoin.