The “Magnificent Seven” technology stocks recorded their worst session since April 2025 after Alphabet and Tesla triggered fresh concerns about heavy AI spending. Bitcoin, meanwhile, showed relative strength, slipping less than 1%, while dogecoin posted the biggest decline among major cryptocurrencies.
Bitcoin remained close to the $65,000 level during Friday’s Asian trading hours, barely reacting as nearly $800 billion in value disappeared from leading U.S. tech companies. The move marked an unusual break from the AI-driven market trend that had influenced crypto prices throughout the month.
The largest cryptocurrency traded around $65,400, down less than 1% over the past day while maintaining a 3% weekly gain. Ether fell 3% to $1,879, while most major tokens moved lower. Dogecoin led losses among large-cap assets, dropping 5% in 24 hours to $0.069 and declining 4% over the week. XRP fell 2% to $1.11, Solana dropped 3% to $76, and Hyperliquid’s HYPE token declined 4% over seven days to $58. Compared with the sharp equity selloff, crypto’s moves remained relatively contained.
The Magnificent Seven—a group of the largest U.S. technology companies that have driven market performance in recent years—plunged 4.8% on Thursday, wiping out about $797 billion in market capitalization. It was their steepest one-day decline since the tariff-related market shock in April 2025.
The broader impact pushed the S&P 500 down 1.2% and the Nasdaq 100 lower by 1.9%. The group now sits roughly 11% below its late-May record high, representing about $2 trillion in lost market value.
The catalyst behind the decline was renewed anxiety over AI investment. Alphabet lifted its annual capital spending outlook to as much as $205 billion, while Tesla CEO Elon Musk said 2026 would be a “massive capex year” after the company posted disappointing earnings.
Those updates intensified concerns that technology giants are investing enormous sums into AI infrastructure before the financial returns from those projects have been fully proven.
The same AI spending debate has shaped crypto markets recently. Bitcoin had been closely tied to the AI trade, climbing alongside chip stocks and weakening when semiconductor shares faced pressure, effectively becoming a proxy for the broader AI investment cycle.
Whether Bitcoin’s stability represents a lasting shift or just a temporary pause remains unclear. Crypto miners have increasingly expanded into AI data-center operations, meaning a prolonged decline in AI spending could eventually impact parts of the digital asset industry.
Still, after weeks of moving almost in sync with AI and semiconductor stocks, Bitcoin’s resilience during a major technology selloff offers the first indication that crypto markets may not be as dependent on the AI boom as recent price action suggested.
