Bitcoin mining stocks and AI-adjacent crypto tokens were some of the biggest losers on Thursday as Nvidia’s sharp decline triggered a broader tech and crypto market selloff. However, this dip may prove to be a buying opportunity for investors, especially in higher-beta altcoins like Solana’s SOL, which saw a double-digit pullback.
Key Takeaways:
- Bitcoin Rebounds Slightly:
– Bitcoin (BTC) recovered slightly, trading at $101,500 after earlier hitting lows of $98,000, though it remains down 3% in the past 24 hours.
– Broader crypto markets were weaker, with the CoinDesk 20 Index falling 5.6%, led by steep losses in AI-linked tokens like Render (RNDR) and File coin (FIL).
- Mining Stock Plunge:
– Shares for mining stocks plunged as investors worried about the associated value of miners’ AI infrastructure. The biggest fallers were Riot Platforms (RIOT) and MARA Holdings (MARA), which plummeted by 8.7% and 16%, respectively.
– Pivoting to AI high-performance computing, miners did terribly: Core Scientific (CORZ), Terault (WULF), and Biter (BTDR) were down between 25%-30%.
- Tech Sector Tumbles:
– Nvidia led the Nasdaq’s 3% decline with a 17% drop, erasing $465 billion in market value. This further reinforced Bitcoin’s strong correlation with tech stocks, as noted by Standard Chartered Bank’s Geoffrey Kendrick.
- Liquidation Spike:
– Nearly $1 billion worth of leveraged crypto positions were liquidated, according to Coin Glass, amplifying the downward momentum across markets.
- Altcoin Opportunity Amid Selloff:
– Analysts seized on altcoins such as Solana, which lost more than 10%, as buying opportunities. For risk-tolerant investors, Solana remains a key hub of crypto AI agent tokens and hence a higher-beta play.
- Macro Events Remain Market Focus
Critical indicators for market sentiment will be a Federal Reserve meeting and earnings reports from big tech firms, like Nvidia. Tech companies are believed to need a strong showing if the momentum is to be maintained.
Analyst Takeaways
This sharp selloff may have been a correction that was overdue, coming after weeks of pricing in bullish news across the AI and crypto sectors. Aurelie Barthere of Nansen noted that this pullback may be the “event” of profit-taking and sets up for strategic re-entry points in crypto markets.
For traders, macroeconomic developments and tech earnings will be things to keep an eye on in the days ahead.
