Bitcoin Steadies Near $65K as AI Market Rout Spares Crypto

The “Magnificent Seven” tech giants suffered their biggest decline since April 2025 after Alphabet and Tesla raised concerns over aggressive AI spending. Bitcoin, however, remained relatively stable, while dogecoin posted the largest drop among major cryptocurrencies.

Bitcoin hovered around $65,000 during Friday’s Asian trading session, showing little reaction as nearly $800 billion was wiped from leading U.S. technology stocks. The move marked a rare moment of separation for the cryptocurrency, which had closely followed the AI-driven market trend throughout the month.

The largest digital asset traded near $65,400, falling less than 1% over 24 hours while remaining up about 3% for the week. Ether dropped roughly 3% to $1,879, with most major tokens also moving lower. Dogecoin suffered the sharpest decline among large-cap cryptocurrencies, falling 5% on the day to $0.069 and losing 4% over the week. XRP slipped 2% to $1.11, Solana declined 3% to $76, and Hyperliquid’s HYPE token fell 4% over seven days to around $58. Despite the declines, crypto losses were relatively small compared with the damage seen in equities.

The Magnificent Seven—a group of mega-cap technology companies that have powered U.S. stock market gains for years—dropped 4.8% on Thursday, wiping out approximately $797 billion in market value. It marked their worst trading session since the tariff-driven selloff in April 2025.

The decline pushed the S&P 500 down 1.2% and the Nasdaq 100 lower by 1.9%, leaving the group about 11% below its late-May peak and erasing roughly $2 trillion in combined value.

The selloff was largely triggered by concerns over rising AI investment. Alphabet increased its projected capital spending for the year to as much as $205 billion, while Tesla CEO Elon Musk described 2026 as a “massive capex year” after the company reported weaker-than-expected earnings.

The announcements reinforced growing concerns that major technology companies may be spending hundreds of billions of dollars building AI infrastructure without clear evidence that future returns will justify the investment.

That same concern has influenced crypto markets throughout the month. Bitcoin had largely moved in line with AI-related stocks, rising when semiconductor shares gained and declining when technology markets weakened, effectively becoming a reflection of the broader AI investment cycle.

Whether this latest move marks the beginning of a lasting split between crypto and AI-related assets remains uncertain. Bitcoin miners have increasingly shifted toward AI data-center operations, meaning a prolonged slowdown in AI investment could eventually affect parts of the crypto sector as well.

Still, after weeks of crypto tracking semiconductor and AI stocks almost directly, Bitcoin’s ability to hold steady during a major AI-driven equity selloff suggests the relationship between the two markets may not be as tightly connected as recent gains implied.