Ether and HYPE Lead Crypto Losses as Semiconductor Selloff Spreads to Digital Assets

A steep selloff in Asian semiconductor stocks spilled into crypto markets on Friday, pulling down nearly every major digital asset. Ether fell 4% to around $1,850, falling roughly twice as hard as bitcoin, while Hyperliquid’s HYPE token dropped 15% to $58, its worst single day performance since June.

Solana slipped 2%, and other major tokens including XRP, BNB, Tron and dogecoin also posted losses. Bitcoin held up relatively better, down 2% to about $63,410 after failing twice to break above $65,000.

Semiconductor Weakness Triggers Broader Risk-Off Mood

The selling originated in chip stocks, with Japan’s Nikkei 225 tumbling 5% in its worst session since March and Taiwan Semiconductor heading for its steepest one day drop in over a year. Asia Pacific equities broadly slumped to a two-month low, raising questions about whether this year’s AI-driven rally in chip stocks has run too far too fast.

Ether Still Holds Weekly Gain Despite Daily Drop

Despite Friday’s decline, ether remains the only major cryptocurrency still up for the week, aided by nearly $97 million in spot ETF inflows over the past three trading days, most of it tied to a single major fund.

Analysts described the week’s price action as consolidation rather than a genuine reversal, noting that trading volumes declined even as prices approached recent highs. Market sentiment remains firmly in “extreme fear” territory. Meanwhile, oil prices moved in the opposite direction, with Brent crude climbing toward $85 a barrel amid escalating conflict in the Middle East and disruptions near key shipping routes.