Global financial markets saw a turbulent session as risk aversion spread among investors. US stocks slid broadly, while Bitcoin tumbled to its lowest level since late 2024, underscoring a growing shift toward safer assets.
By the close, the Dow Jones Industrial Average fell 167 points, or 0.34%, after being down as much as 575 points earlier in the session. The S&P 500 dropped 0.84%, while the Nasdaq slid 1.43%. It marked the worst performance in two weeks for both the S&P and Nasdaq, with technology and software stocks leading the sell-off.
Amid the cautious mood, Bitcoin at one point plunged nearly 7%, slipping below $73,000 — its lowest level since shortly after President Donald Trump’s election victory. The cryptocurrency later staged a modest rebound and traded around $76,800.
From its record high above $126,000 set in October, Bitcoin has now lost roughly 40% of its value. Although the Trump administration has promoted pro-crypto policies and pledged to make the United States the “crypto capital of the world,” the market has struggled to regain sustainable momentum.
While Bitcoin and equities weakened, traditional safe-haven assets surged. Gold futures climbed 6.7% to $4,965 per ounce, while silver jumped more than 10% to nearly $85 per ounce. According to FactSet data, gold has now outperformed Bitcoin over the past five years.
Gerry O’Shea, head of global market insights at Hashdex, said Bitcoin’s growing divergence from gold suggests investors increasingly view gold as the dominant store-of-value asset during periods of currency debasement, geopolitical tension, and macroeconomic uncertainty.
He added that Bitcoin is likely to remain volatile in the near term as the crypto industry seeks greater regulatory clarity and deeper integration into mainstream financial infrastructure, though its long-term appeal could continue to strengthen.
Wall Street unnerved by AI disruption fears
US stocks also came under pressure as Wall Street digested fresh developments in the artificial intelligence sector. AI startup Anthropic recently unveiled new capabilities for its Claude chatbot, allowing it to assist with and automate legal-related tasks. The announcement reignited concerns that AI could disrupt the business models of software and data-service companies.
Salesforce shares plunged nearly 6.9%. Microsoft slipped 2.87%, Amazon lost 1.79%, and Nvidia — the poster child of the AI boom — fell 2.84%, weighing on the broader market.
Investors are becoming increasingly skeptical about how profitable the AI boom will ultimately be, as major firms pour tens of billions of dollars into infrastructure without yet proving commensurate returns. Earlier, Microsoft wiped out nearly $360 billion in market value in a single session after reporting weaker-than-expected cloud growth and higher AI spending.
With earnings season underway, investors are now scrutinizing corporate forecasts more closely, focusing on whether massive investments in AI can translate into sustainable profits rather than long-term financial strain.
