Global risk assets continued their decline this week, and the crypto market was not immune. Bitcoin fell as low as $62,715 during Asian trading hours, extending its weekly decline to 14.5%. Ethereum, SOL, and HYPE all weakened, indicating that selling pressure has spread from the stock and currency markets to crypto assets.
The decline of AI trading has dragged down risk assets.
This decline was not triggered solely by events within the crypto market. Broadcom's outlook for its AI chip business fell short of high market expectations, putting pressure on the semiconductor sector, with Nasdaq 100 futures declining for the third consecutive day.
Asian stock markets also declined in tandem. South Korea's KOSPI index fell 4.7%, and SK Hynix dropped 8%. The MSCI Asia Pacific index fell 1.4%, indicating a significant cooling of market risk appetite.
Asian currency markets simultaneously released pressure.
In addition to the stock market, Asian currency markets also experienced significant volatility. The South Korean won fell to its lowest level since 2009, and the Indonesian rupiah approached its historical low, reflecting the continued withdrawal of overseas funds from some regional markets.
The Reserve Bank of India introduced new measures to attract capital inflows, keeping the Indian rupee relatively stable. Overall, Asian markets saw a relatively consistent safe-haven trading this week, with crypto assets also included in the same round of sell-offs.
Continuous outflows from ETFs weaken buying interest.
The US spot Bitcoin ETF has seen net outflows for 13 consecutive trading days since mid-May, with a cumulative outflow of approximately $4.4 billion. The significant influx of new funds supporting Bitcoin over the past year has slowed considerably recently.
Meanwhile, Strategy disclosed this week that it sold 32 bitcoins to pay its preferred stock dividend obligations. This is the company's first disclosed bitcoin sale since 2022, and although the amount is small, it has further exacerbated market concerns about weakening buying interest.
In terms of tokens, Hyperliquid's HYPE fell 14.8% to $62.14, almost erasing all of its recent relative strength. The market had expected high-cash-flow tokens to be relatively resilient during pullbacks, but this rotation did not last.
Non-farm payroll data becomes the next point of observation
Next, market focus will shift to the US non-farm payroll data. Investors are using this data to assess the Federal Reserve's future interest rate path and whether the recent AI-themed trading in risk assets will see a correction.
