Leading cryptocurrencies fell alongside stocks on Thursday as the chip selloff and Iran tensions impacted risk appetite.
Bitcoin retreated to the $63,000 zone after consolidation, while Ethereum tumbled to an intraday low of $1,848. XRP and Dogecoin also edged lower.
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 3.53% and 2.22%, respectively.
More than $320 million in cryptocurrency positions were liquidated over the past 24 hours, including $276 million in bullish long positions, according to Coinglass data.
Bitcoin's open interest fell 2.73% over the last 24 hours. That said, smart money sentiment on Binance, which refers to the collective outlook and capital allocation of institutional investors, remained "Bullish."
Market sentiment switched from "Extreme Fear" to "Fear," according to the Crypto Fear & Greed Index.
The global cryptocurrency market capitalization stood at $2.22 trillion, representing a slight increase of 0.14% over the last 24 hours.
Stocks sold off sharply on Thursday. The Dow Jones Industrial Average lost 105.67 points, or 0.20%, to close at 52,552.97. The S&P 500 fell 0.51% to end at 7,533.77, while the tech-heavy Nasdaq Composite shed 1.47% to settle at 25,881.95.
Semiconductor stocks fell sharply on fears that big AI companies might slash their spending earlier than expected. This follows Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) raising its 2026 capital spending plan to $60 billion to $64 billion, up from its previous forecast of $52 billion to $56 billion.
In other news, White House Press Secretary Karoline Leavitt said Iran "very much continues to talk" and expressed willingness to make a deal with the U.S.
Michaël van de Poppe, a popular cryptocurrency commentator, maintained a bullish stance on Bitcoin, stating that despite a recent correction, it looks primed for "upside momentum."