A wave of forced liquidations swept the crypto market, pushing bitcoin to its lowest level since early June as the sector tracked declines in AI-linked equities. More than $1 billion in leveraged positions were wiped out, with bitcoin and ether leading the losses. The selloff reflected crypto's growing correlation with the broader AI trade, which had been under pressure ahead of key earnings. Sentiment stabilized after Micron reported stronger-than-expected results and SK Hynix announced plans for a U.S. listing, helping steady the AI-related risk assets that crypto had been falling alongside. The episode highlights how digital assets are increasingly moving in tandem with technology stocks, leaving traders exposed to shifts in equity-market sentiment. Whether the rebound holds depends on continued strength in the AI sector and broader risk appetite across financial markets.
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