Bitcoin Falls Near $61,000 as AI-Driven Market Rally Loses Momentum

Bitcoin dropped close to the $61,000 level on Friday as a broader sell-off in technology and artificial intelligence-related assets weighed heavily on global financial markets. Btc traded near $61,400 during Asian trading hours, leaving it down roughly 14.5% for the week.

The decline was not limited to Bitcoin. Ether fell nearly 7% to around $1,630, while Solana lost more than 6%, extending its weekly decline to nearly 20%. Hyperliquid’s HYPE token also came under pressure, dropping almost 16% in a single day and giving up most of its recent gains.

AI Sector Weakness Triggers Broader Risk-Off Sentiment

Market pressure intensified after Broadcom’s latest outlook for artificial intelligence chips failed to meet elevated investor expectations. The disappointment sparked fresh selling across semiconductor stocks and technology-focused markets.

The Nasdaq 100 recorded a third consecutive daily decline, while major Asian stock indexes also moved lower. South Korea’s KOSPI index fell sharply, and regional currencies faced renewed pressure as investors reduced exposure to risk assets.

Bitcoin ETFs and Strategy Sale Add to Market Pressure

The crypto market has also been affected by ongoing capital outflows. US spot Bitcoin exchange-traded funds have recorded 13 consecutive trading sessions of net outflows, totaling approximately $4.4 billion since mid-May.

Investors Await Key US Economic Data

Another factor weighing on sentiment was Strategy’s reported sale of 32 Bitcoin to meet preferred stock dividend obligations, marking its first disclosed Bitcoin sale since 2022.