Key facts
- Bitcoin fell to $62,715, down 14.5% for the week.
- Ether dropped 4.8% to $1,696, and Solana fell 5.4% to $66.51.
- Broadcom's weak AI chip outlook triggered a third day of Nasdaq declines.
- US spot Bitcoin ETFs recorded 13 straight sessions of net outflows totaling $4.4 billion.
- The Indian rupee stabilized after the Reserve Bank of India announced measures to attract capital inflows.
Bitcoin experienced a sharp decline, falling to $62,715, down 14.5% for the week. This downturn is linked to a reversal in the 'AI trade,' initiated by Broadcom's AI chip outlook missing expectations. The selloff spread to other cryptocurrencies, with Ether dropping 4.8% to $1,696 and Solana falling 5.4% to $66.51. Equity markets also reacted negatively, with Nasdaq 100 futures down 1.2% and the MSCI Asia-Pacific index down 1.4%. Chipmaker SK Hynix saw an 8% decline. Currency markets faced pressure, with the Korean won hitting a multi-year low, though the Indian rupee stabilized after central bank intervention. Adding to the pressure on Bitcoin, US spot ETFs have recorded 13 consecutive sessions of net outflows totaling $4.4 billion. Market participants are now focused on the upcoming US nonfarm payrolls report for clues on Federal Reserve policy.