According to Woofun AI, the cryptocurrency market suffered a severe blow on Thursday as a broad selloff on Wall Street spread, with core assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) falling sharply. The rebound established on Wednesday was completely erased, and risk appetite contracted sharply.
The deeper cause of this plunge lies in the significant deterioration of risk appetite across global financial markets, particularly as U.S. tech stocks dragged the broader market lower amid investor concerns over excessive valuations and the sustainability of massive artificial intelligence infrastructure investments. The Nasdaq Index (^IXIC) fell 5.52%, a decline that directly intensified selling pressure on speculative assets of all kinds, leaving cryptocurrencies and other high-risk assets most exposed.
Specifically, Bitcoin (BTC) dropped 5.65% to $75,880.60, with a 24-hour decline of 5.53%; Ethereum (ETH) performed worse, falling 7.80% to $2,233.79, corresponding to a 7.69% drop; and Solana (SOL) declined 6.22% to $89.55, a decrease of 5.46%. Notably, leveraged trading liquidations further amplified the downward momentum, as forced position closures brought additional selling pressure that accelerated losses as prices slid. The brief rebound seen on Wednesday quickly disappeared amid tightening financial conditions, indicating that market trends can reverse dramatically when investors reduce allocations to high-risk assets.
Woofun AI's compiled data shows that this contagion effect, in which sentiment from traditional markets transmits into the crypto space, was especially evident against the backdrop of the Nasdaq's 5.5% decline, highlighting the extreme sensitivity of speculative assets to changes in the macroeconomic and financial environment. On the institutional capital front, Bitcoin-themed ETF (IBIT.US) is facing enormous selling pressure, having recorded net outflows exceeding $1.1 billion for three consecutive trading days before finally logging net inflows on Wednesday. However, Thursday's market decline has once again raised concerns about institutional capital outflows.
The performance of major funds largely tracked the price movements of their underlying assets: iShares Bitcoin Trust ETF (IBIT.US) fell 5.07%, Fidelity Wise Origin Bitcoin Fund (FBTC.US) dropped 4.93%, while iShares Ethereum Trust ETF (ETHA.US) declined 7.25%. These changes in ETF net asset values not only reflect retail investor sentiment but also reveal the institutional-level tendency toward risk aversion amid rising macroeconomic uncertainty. The reversal in fund flows indicates that despite previous inflows, institutional investors are inclined to reduce risk exposure when facing sustained selling pressure in tech stocks and AI-related shares, adding uncertainty to the crypto market's outlook.
From a technical and market-wide data perspective, whether Bitcoin can hold the critical support zone of $75,000 to $76,000 has become crucial. If this range is breached, a more severe correction could follow. Other major altcoins such as Ripple (CRYPTO: XRP), Ethereum, and Solana have already given back most of their earlier gains, and investors are closely watching the stability of their support levels.
Among the top ten best-performing cryptocurrencies, Bitcoin (BTC) ranked first at $75,880.60 with a 24-hour decline of -5.7% and a 7-day decline of -5.8%; Ethereum (ETH) placed second at $2,233.79 with a 24-hour decline of -7.8% and a 7-day decline of -4.0%; Tether (USDT) was priced at $0.9989 with a change of -0.0%; Binance Coin (BNB) was at $689.13 with a 24-hour decline of -4.0% and a 7-day decline of -7.2%; Ripple (XRP) was at $1.22 with a 24-hour decline of -6.3% and a 7-day decline of -4.0%; USDC (USDC) was at $0.9995 with a change of -0.0%; Solana (SOL) was at $89.55 with a 24-hour decline of -6.2% and a 7-day decline of -9.9%; Tron (TRX) was at $0.3180 with a 24-hour decline of -0.5% and a 7-day decline of -4.0%; Figure Heloc (FIGR_HELOC) was at $1.04 with a 24-hour gain of +1.5% and a 7-day decline of -0.5%; Zcash (ZEC) was at $1,244.12 with a 24-hour decline of -3.6% and a 7-day decline of -5.7%.
Future trends will largely depend on developments in traditional markets, particularly whether selling pressure on tech stocks, AI-related shares, and semiconductor stocks eases. Until the Nasdaq and the crypto market diverge or traditional markets stabilize, investors should remain cautious about short-lived rebounds and avoid mistaking them for signals of a sustained recovery.