Key Takeaways
- Bitcoin declined to $62,715, marking a 14.5% weekly loss as artificial intelligence trade momentum reversed
- Ethereum decreased 4.8% to $1,696 while Solana tumbled 5.4% to $66.51
- Disappointing AI chip guidance from Broadcom sparked the Nasdaq’s third consecutive day of losses
- Bitcoin spot ETFs in the US experienced their 13th consecutive day of net withdrawals, amounting to $4.4 billion total
- Market participants await Friday’s employment data for signals about Federal Reserve policy direction
Cryptocurrency markets experienced significant declines on Friday as a widespread retreat from artificial intelligence investments simultaneously impacted digital assets and traditional equities.
Bitcoin descended to $62,715 during Asian market hours, posting a 1.9% daily decline and a substantial 14.5% weekly drop. Ethereum fell 4.8% to reach $1,696, while Solana decreased 5.4% to $66.51. Solana’s weekly performance shows an 18.5% decline.
The selling pressure originated outside the cryptocurrency sector. The catalyst was Broadcom’s earnings announcement.
Broadcom’s Disappointing Guidance Triggers Market-Wide Retreat
Broadcom released quarterly earnings on Wednesday. The company’s artificial intelligence chip projections fell short of analyst expectations, bringing an end to months of semiconductor sector gains. The disappointment created a domino effect throughout financial markets.
Nasdaq 100 futures declined 1.2% on Friday, extending losses into a third consecutive session. South Korea’s KOSPI index plummeted 4.7%. Semiconductor manufacturer SK Hynix dropped 8%. The MSCI Asia-Pacific benchmark declined 1.4%.
Foreign exchange markets experienced turbulence as well. South Korea’s won reached its weakest point since 2009. Indonesia’s rupiah traded near record lows as international investors withdrew capital from domestic bond holdings.
India’s rupee stood out as an exception. The Reserve Bank of India implemented measures designed to encourage capital inflows, providing currency support.
Sustained ETF Withdrawals Compound Selling Pressure
The market downturn arrived at a particularly challenging time for cryptocurrencies. US-based Bitcoin spot ETFs have now recorded 13 consecutive sessions of net withdrawals, accumulating approximately $4.4 billion in outflows since mid-May.
Strategy revealed its first Bitcoin sale since 2022 during the week. The firm liquidated 32 Bitcoin to fulfill dividend requirements on preferred shares. These combined developments eliminated a crucial buying force that had supported Bitcoin prices throughout much of the previous 18 months.
Hyperliquid’s HYPE token had been among the few assets maintaining weekly gains. That status changed on Friday. HYPE plunged 14.8% to $62.14, reducing its weekly advance to merely 1.5%.
Zcash had similarly maintained positive territory earlier in the week. By Friday’s close, those gains had evaporated.
The Dow Jones Industrial Average diverged from the broader trend on Thursday, climbing to a new all-time high. Healthcare and financial sector stocks drove the advance, despite technology weakness following Broadcom’s results.
Employment Data Takes Center Stage
The upcoming catalyst for markets arrives with the US nonfarm payrolls release, scheduled for Friday at 8:30 a.m. ET. Economic forecasters anticipate solid payroll expansion and an unchanged unemployment rate.
Should the report come in below expectations, it could reignite speculation about Federal Reserve interest rate reductions under newly confirmed chair Kevin Warsh. Such an outcome would likely decrease real yields and potentially provide upward momentum for both AI-related investments and cryptocurrencies.
A stronger-than-anticipated report could extend market declines. Pending the data release, both equity and cryptocurrency markets continue tracking downward together.
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