Bitcoin Slides 4% as Tech Rout Deepens and Volatility Surges

Bitcoin extended losses on Friday as a sharp selloff in technology shares pushed investors into risk-off mode. Nasdaq 100 futures fell 2%, while S&P 500 futures were down 1.1%. In South Korea, tech stocks dropped as much as 10% before trading was briefly halted. Pressure has been building for weeks, with June 5 marking the Nasdaq's steepest one-day decline since April 2025, down more than 4%. The gloom spilled into crypto markets. Bitcoin fell about 4% and Ethereum slid roughly 6%. Several developments have weighed on sentiment. U.S. chipmaker Broadcom missed quarterly sales expectations earlier this month, adding to uncertainty around semiconductor demand. Investors are also focused on the scale of debt funding the year's AI buildout: around $750 billion in enterprise investment across AI and tech has increased exposure to borrowing costs. With markets now pricing in the possibility of an interest-rate hike in October, debate has intensified over how much future earnings AI companies can deliver. Volatility is flashing warning signs as well. The SOX index, a key gauge for semiconductor stocks, has reached extreme volatility levels comparable to those seen during the 2000s dot-com bubble. Crypto has tracked tech more closely since 2025, and the correlation was on display again. Bitcoin dipped below $62,000 earlier in the day alongside the tech slide, and traders on the Kalshi prediction market now lean toward Bitcoin falling below $60,000 sometime this year. Additional headwinds include a stronger U.S. dollar, significant ETF outflows earlier this year, and an executive order on quantum technologies signed yesterday by Donald Trump. Ethereum remains about 35% below its 2026 highs, while many altcoins have fallen more than 50%. The pullback does not necessarily signal broader market dysfunction, but it underscores how much last year's AI enthusiasm depends on future profits rather than current revenue. Source: CryptoPotato