The crypto slide tracked weakness in after a sharp decline in tech stocks. Microsoft shares dropped 10% on Thursday, marking the company’s biggest daily fall since March 2020 after it reported record spending and slower cloud sales growth.
Jeff Mei, chief operations officer at BTSE exchange, tied the sell-off to tech earnings. “Last night’s market dip had a clear correlation to Microsoft’s earnings flop,” Mei said.
Mei also said investors worried that a pullback in AI-linked tech stocks could weigh on broader markets. He added that some traders reduced risk exposure as uncertainty increased.
Sentiment indicators reflected the stress. The Crypto Fear and Greed Index fell 10 points to 16, its lowest level since December 20.
Policy uncertainty added another layer of caution. US lawmakers failed to pass a spending package on Thursday, raising concerns about a possible government shutdown if legislation stalls through the weekend.
Institutional demand also weakened as US-listed spot Bitcoin exchange-traded funds recorded $817.8 million in net outflows in the previous session. The outflows extended a three-day run, reducing a key support for prices through late 2025.
For now, has returned to a key monthly support area after sliding back to April levels. Traders are watching if BTC can hold above $81,000 as forced selling eases and macro risks stay in focus.
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