Broadcom's disappointing AI chip forecast has weighed on the Nasdaq for three consecutive sessions, dragging Asian stocks down and affecting crypto markets.
By Shaurya Malwa Jun 5, 2026, 6:08 a.m. 2 min readMake preferred onKey Highlights:
- Bitcoin and other major cryptocurrencies continued to experience significant weekly losses as the artificial intelligence sector, which has bolstered global risk assets since 2026, faced a downturn.
- The decline stemmed from equity and currency markets, with semiconductor stocks, Asian indexes, and various regional currencies experiencing a widespread risk-off trend.
- Ongoing withdrawals from U.S. spot bitcoin ETFs and an unusual bitcoin sale by Strategy have diminished a critical support source, shifting market attention to the upcoming U.S. jobs report for insights on Federal Reserve policy and the AI market's future.
During Asian trading hours on Friday, Bitcoin fell to $62,715, representing a 1.9% decrease for the day and a 14.5% decline for the week, as the AI sector's momentum waned.
Ether saw an even steeper decline of 4.8%, reaching $1,696, marking a weekly drop of over 15%, while Solana dropped 5.4% to $66.51, resulting in an 18.5% loss over the past seven days.
This market sell-off was primarily influenced by factors outside the cryptocurrency sector. Broadcom's recent quarterly outlook for AI chips fell short of high expectations, halting a months-long rally in semiconductor stocks following their lows from the war.
On Friday, Nasdaq 100 futures decreased by 0.9%, marking the index's third consecutive day of losses. South Korea's KOSPI, which had been the top-performing major equity index this year, plunged 4.7%, with chipmaker SK Hynix down by 8%. Additionally, MSCI's Asia-Pacific equities index fell by 1.4%.
The currency markets also showed signs of strain. The Korean won fell to a low not seen since 2009, while the Indonesian rupiah neared its record low against the dollar as foreign investors withdrew billions from local bond markets.
In contrast, the Indian rupee managed to defy this trend after the Reserve Bank of India introduced new measures to attract foreign capital. Overall, Asia is experiencing a synchronized risk-off shift that has been gradually developing over the week.
Within this context, the crypto market is also feeling the pressure. Hyperliquid's HYPE, previously the only top-10 cryptocurrency showing gains for the week, plummeted 14.8% to $62.14, erasing most of its recent gains and now reflecting only a slight 1.5% increase for the week.
The narrative surrounding high-cash-flow tokens experiencing a rotation into demand while other cryptocurrencies struggled lasted less than one trading day. Zcash, which had also been performing well recently, has now reverted its weekly gains.
The structural environment remains challenging. U.S. spot bitcoin ETFs have recorded 13 consecutive sessions of net outflows totaling about $4.4 billion since mid-May.
Earlier this week, Strategy executed its first publicly disclosed bitcoin sale since 2022, selling 32 BTC to meet preferred stock dividend obligations. These combined movements have eliminated a structural support that had sustained bitcoin for much of the past 18 months.
The upcoming U.S. nonfarm payrolls report is now a critical point of focus. A weak report could rekindle expectations for Federal Reserve rate cuts under newly appointed chair Kevin Warsh, potentially lowering real yields and boosting the AI sector, which would likely benefit cryptocurrencies as well. Conversely, a strong report could lead to the opposite effect. Until the data is released, both stock and crypto markets are likely to continue their current downward trajectory.
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