Bitcoin holds $65K as $800B tech selloff spares crypto market
In brief
- Bitcoin traded near $65,400, down less than 1% during tech stock selloff
- Magnificent Seven collapsed 4.8%, losing $797 billion in worst day since April 2025
- Dogecoin fell 5% to $0.069 as major cryptocurrencies declined
- Alphabet and Tesla spooked investors with elevated AI capex forecasts
- Bitcoin decoupled from tech turmoil, tracking AI cycles throughout the month
Magnificent Seven crumbles on capex shock
The Magnificent Seven fell 4.8% on Thursday and shed $797 billion in market value in their worst day since April 2025. The S&P 500 fell 1.2% and the Nasdaq 100 fell 1.9% following the collapse. The catalyst: two megacap giants rattled confidence in AI's capital trajectory.
Alphabet raised its capital expenditure forecast to as much as $205 billion for the year, a move that spooked investors betting on near-term profitability. Tesla compounded the damage. Tesla chief executive Elon Musk called 2026 "a massive capex year" as the company reported profits well below expectations.
The group fell 11% below its late-May record, erasing $2 trillion in value. Yet crypto held ground.
Crypto's muted response
Ether slipped 3% to $1,879, and Solana lost 3% to $76. XRP fell 2% to $1.11.
Dogecoin was the worst performer among major cryptocurrencies, down 5% on the day to $0.069. Bitcoin's resilience stood out. Bitcoin was up 3% on the week, suggesting the selloff was tactical rather than structural.
Why Bitcoin tracked tech stocks
Bitcoin has tracked the AI trade closely throughout the month, rising when chip stocks rallied and falling when they wobbled. The connection runs deeper than correlation. Bitcoin's miners have rebuilt themselves as AI data-center operators, tying the asset's fortunes to infrastructure spending cycles. Friday's action—a modest dip—suggests the market is distinguishing between AI's capital intensity and Bitcoin's fundamentals. The question now is whether the capex shock spreads beyond the Magnificent Seven.
