Bitcoin Drops Below $62K as AI-Fueled Market Rally Unravels, Dragging Crypto Lower
The cryptocurrency market remained under heavy pressure on Friday, with Bitcoin falling below $62,000 as a broader retreat in global risk assets spilled into digital currencies. The decline comes amid weakening momentum in the artificial intelligence investment boom that has driven much of the market's gains throughout 2026.
Bitcoin dropped 1.9% over the past 24 hours to trade around $61,115. The leading cryptocurrency has now shed roughly 14.5% over the last seven days, marking one of its steepest weekly pullbacks this year.
Other major digital assets experienced even larger declines. Ether slid 4.8% to $1,696, bringing its weekly losses to more than 15%, while Solana plunged 5.4% to $66.51, extending its seven-day decline to nearly 19%.
The latest wave of selling originated largely from traditional financial markets. Investor sentiment weakened after chip giant Broadcom delivered an AI-related outlook that failed to meet elevated market expectations, triggering a pullback across semiconductor stocks and AI-linked equities.
Technology stocks continued to retreat, with Nasdaq 100 futures falling another 0.9% and extending a three-day losing streak. Across Asia, South Korea's KOSPI index dropped 4.7%, led by significant losses in semiconductor companies, while broader regional equity benchmarks also moved lower.
Currency markets added to concerns about investor risk appetite. The South Korean won fell to its weakest level since 2009, while Indonesia's rupiah hovered near record lows against the U.S. dollar as foreign capital flowed out of local markets. India stood out as an exception after policymakers introduced measures aimed at attracting fresh investment inflows.
Within crypto, the downturn erased recent pockets of resilience. Hyperliquid's HYPE token, one of the few major digital assets that had maintained gains earlier in the week, tumbled nearly 15% to around $62. The sharp drop wiped out most of its recent outperformance and underscored the market-wide nature of the selloff. Zcash also surrendered previous gains, joining the broader decline across altcoins.
Beyond market sentiment, structural pressures continue to weigh on Bitcoin. U.S. spot Bitcoin ETFs have recorded 13 consecutive trading sessions of net outflows, with investors pulling approximately $4.4 billion since mid-May. At the same time, Strategy disclosed its first Bitcoin sale since 2022, selling 32 BTC to help meet dividend obligations tied to its preferred stock program.
Market participants are now closely watching the upcoming U.S. nonfarm payrolls report, which could determine the next major move for both traditional and digital assets. A weaker-than-expected employment reading could strengthen expectations for Federal Reserve rate cuts, potentially boosting risk assets and reviving demand for cryptocurrencies. Conversely, stronger labor data may reinforce concerns about higher interest rates for longer, adding further pressure to both stocks and digital assets.
For now, investors appear to be reducing exposure across risk markets as uncertainty surrounding economic conditions and the AI-driven growth narrative continues to build.