Key facts
- Ether, XRP, and dogecoin led a broad cryptocurrency selloff.
- The decline in crypto assets was exacerbated by a global tech stock selloff.
- Ether fell 5.6% in 24 hours and 7.9% on the week.
- Bitcoin traded around $59,888, down 2.7% on the day and 4.5% on the week.
- Apple shares dropped 6.1% following news of price increases on its devices.
- South Korea's Kospi index fell over 8%, leading to trading halts.
Major cryptocurrencies, including ether, XRP, and dogecoin, experienced a significant selloff, falling more sharply than bitcoin. This broad decline in risk assets was largely driven by a renewed rout in technology stocks globally. Ether saw the steepest fall among large-cap cryptocurrencies, dropping 5.6% in 24 hours and 7.9% over the week. XRP and dogecoin also posted substantial weekly losses.
Bitcoin dipped near $58,000 before recovering to trade around $59,888, down 2.7% on the day and 4.5% on the week. The pressure originated from outside the crypto market, with global stocks hitting a two-week low. This downturn was partly triggered by Apple's shares falling 6.1% after announcing price increases for its Mac, iPad, and home devices, raising concerns about component costs impacting the AI trade.
South Korea's Kospi index tumbled as much as 9%, leading to its second trading halt of the week, with major chipmakers SK Hynix and Samsung both declining over 8%. Nasdaq 100 futures also fell 1.5%. Brent crude slipped below $74 a barrel, briefly reviving supply concerns after a projectile strike in the Strait of Hormuz.
Analysts suggest that large holders have been selling bitcoin into a market with diminishing risk appetite, as investor attention and capital increasingly flow into AI-related stocks. This rotation has left cryptocurrencies competing for a smaller share of overall risk appetite. Despite the pullback, bitcoin is currently situated in a historically important support zone between $50,000 and $60,000, with key levels at $55,000 on the downside and $61,000 to $62,000 on the upside.