Bitcoin tumbled below $95,000 Friday, extending a four-day selloff that's now mirrors the broader tech rout gripping AI-focused stocks. The world's largest cryptocurrency dropped 3.5% to $94,896, caught in the same investor exodus that's hammering everything from Meta to Nvidia over mounting concerns about Silicon Valley's AI spending spree.
Bitcoin's latest plunge isn't happening in isolation. The cryptocurrency's 3.5% drop to $94,896 Friday represents the fourth consecutive day of losses, putting it in lockstep with a broader selloff hammering artificial intelligence stocks across Silicon Valley.
The timing isn't coincidental. Bitcoin attracts many of the same institutional investors who've been pouring billions into AI-focused tech giants, creating an unexpected correlation between crypto and the tech sector's highest-flying names. When Meta, Nvidia, and Tesla started shedding 1% to 5% in premarket trading Thursday, Bitcoin followed suit.
The digital asset had briefly reclaimed $107,000 on Tuesday before the latest rout began. That $12,000 swing in just three days underscores how volatile the crypto market remains, even as it's matured into a $2 trillion asset class that now moves in tandem with traditional tech stocks.
The selloff reflects growing investor unease about the astronomical spending on AI infrastructure. Alphabet, Meta, and other tech giants have collectively committed hundreds of billions to AI development, with little clarity on when these investments will generate meaningful returns. According to CNBC's analysis, this spending concern is now spilling over into crypto markets.
Futures on the Nasdaq-100 fell more than 1% before the bell Thursday, with the index's AI-heavy composition dragging down everything from Intel to smaller crypto-adjacent plays. The correlation suggests Bitcoin has evolved from a speculative alternative asset into something that moves with the same institutional flows driving traditional tech investing.
This isn't the first time crypto has tracked tech stock sentiment, but the current four-day slide represents one of the clearer examples of how intertwined these markets have become. Institutional adoption of Bitcoin through ETFs and corporate treasury strategies has essentially made it another tech trade for many investors.
The broader crypto market is feeling the pressure too. Ethereum and other major altcoins are posting similar declines as investors reassess risk across all speculative tech plays. The selloff comes just as crypto was building momentum heading into what many expected to be a strong Q4.
