Crypto Alert: Bitcoin Dives to $65K as Tech Stocks Plunge 3% in Broad Market Sell-Off

Bitcoin Backslides to $65K Amid Tech Sector Woes

The crypto world felt the heat this week as , wiping out recent gains that had briefly pushed it past $70,000. This sharp pullback mirrors a rough patch for tech stocks, with the sector dropping 3% and dragging the broader market down.

Over the last 24 hours, Bitcoin shed about 2% of its value. Ethereum and Solana followed suit, posting similar losses. This isn’t just a crypto hiccup—it’s tied to bigger market moves.

Tech Stocks Lead the Charge Lower

The Nasdaq Composite Index fell 2% on Wednesday, driven by heavy selling in tech. Software companies took the biggest hit, with the iShares Expanded Tech-Software Sector ETF down 3% in one day.

Year-to-date, this ETF has lost 21%. Why? Investors worry about sky-high valuations as AI tools start writing code faster and cheaper. What happens to software firms when AI does their job?

Macro expert Jim Bianco points out the link: crypto is like “programmable money,” behaving a lot like tech stocks under pressure. Both face the same risks from rapid tech shifts.

• Nasdaq: -2% Wednesday
• Software ETF: -3% daily, -21% YTD
• Bitcoin: Back to $65K support level

Precious Metals Join the Sell-Off

Gold and silver couldn’t escape the pain. Both metals gained early Wednesday but crashed in the afternoon.

Silver plunged 10.3% to $75.08 per ounce. Gold dropped 3.1% to $4,938 per ounce. The sudden speed of these moves hints at big players selling off in unison.

This rare sync between crypto, tech, and metals shows how fear can spread fast across assets.

Stock Futures Point to More Caution

Friday morning saw U.S. stock futures dip 0.2% for the S&P 500, Nasdaq 100, and Dow Jones. Markets are still reeling from Thursday’s broad decline.

AI disruption fears now hit real estate and transport too. All seven “Magnificent Seven” megacaps ended Thursday lower. Apple saw its worst one-day drop since April 2025, down 5%.

Bright Spots Amid the Red

Not all news was bad. Applied Materials stock jumped over 10% in premarket Friday after beating earnings and giving upbeat guidance. Chip equipment demand stays strong.

Rivian shares soared 13% on better-than-expected revenue of $1.286 billion, topping forecasts of $1.26 billion. EV plays show pockets of strength.

Eyes on Key Data: January CPI Report

Traders hold their breath for January’s Consumer Price Index (CPI) data. This inflation gauge could sway Fed rate cut bets.

Lower inflation might boost risk assets like crypto. Hotter numbers could extend the sell-off. With Bitcoin testing $65K support, the report looms large.

What Does This Mean for Crypto Investors?

The move ties crypto tightly to tech fortunes. As AI shakes up software, expect more volatility. But dips like this often birth buying chances for long-term holders.

Watch these levels:

• Bitcoin support: $65,000–$64,000
• Resistance: $68,000–$70,000
• Ethereum: Key at $3,200

Broader markets matter more than ever. Tech rebounds could lift crypto; prolonged weakness might test lower floors.

Strategies to Navigate the Storm

1. Dollar-cost average: Buy dips steadily to average into positions.
2. Diversify: Mix crypto with stable assets like gold (despite its dip).
3. Stay informed: Track CPI, Fed speeches, and tech earnings.
4. Risk management: Use stop-losses around key supports.

The highlights how interconnected markets are. Crypto isn’t isolated—it’s part of the global risk trade.

Stick around for more updates as we head into CPI week. Will Bitcoin bounce or break lower? Time will tell.