The cryptocurrency market suffered another sharp downturn after global technology stocks slid, adding broader pressure across risk assets.
Total crypto market capitalization fell 2.39% to $2.57 trillion on Thursday. Major cryptocurrencies traded firmly in the red, with XRP dropping 10.2%, BNB falling 8.8%, and Ethereum sliding 7.7%.
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Bitcoin declined 6.9% to the $70,000 level during Thursday morning trading in Europe.
Liquidations Spike Across the Market
The sell-off triggered a wave of liquidations across the crypto market. Nearly $856 million worth of leveraged positions were wiped out, the vast majority of which, approximately $777 million, were long positions.
According to CoinGlass data, more than 175,600 traders were liquidated over the past 24 hours, with the largest losses concentrated in Bitcoin, Ethereum, and Solana positions.
Crypto ETFs See Heavy Outflows
US-listed Bitcoin exchange-traded funds (ETFs) recorded a second consecutive day of significant outflows.
Data from SoSoValue shows that since February 3, total net outflows have exceeded $800 million, erasing nearly $562 million in inflows recorded on February 2.
US Ethereum ETFs also remained under pressure, posting daily net outflows of roughly $79.5 million on February 4.
Tech Stocks Extend Declines
The downturn in crypto coincided with renewed weakness in US equities, particularly in the technology sector.
The S&P 500 fell 0.5%, marking its fifth decline in the past six sessions. The Dow Jones Industrial Average rose 260 points, or 0.5%, while the Nasdaq Composite sank 1.5%.
Although more than twice as many stocks advanced as declined within the S&P 500, losses in major technology names weighed on the index for a second straight day.
Technology stocks are broadly feeling pressure, even as several companies deliver stronger-than-expected earnings. Investors are increasingly questioning whether Big Tech valuations climbed too far following years of market dominance.
Software companies, in particular, face growing uncertainty over whether AI–driven competitors could erode future revenues.
AI Spending and Disruption Fears Grow
AI-related concerns continue to mount, including fears of overheated valuations, massive capital expenditures on AI infrastructure, and the risk that AI could disrupt or cannibalize revenues for software and adjacent technology firms.
Several SaaS heavyweights, including Microsoft, Salesforce, and ServiceNow, recorded notable declines as investors reassessed long-term growth expectations.
Why This Matters
The parallel sell-off shows crypto remains tightly linked to tech stocks. As long as tech sentiment drives markets, crypto is likely to track equity volatility rather than decouple.
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People Also Ask:
Cryptocurrencies are increasingly treated as high-risk assets, so they often move in tandem with tech stocks when investors adjust risk exposure.
Liquidations occur when leveraged positions are forcibly closed, usually because a trader’s losses exceed their collateral, amplifying market volatility.
Investor concerns about tech valuations, AI competition, and growth prospects can influence broader risk sentiment, which in turn impacts crypto markets.
