The Magnificent Seven tech giants faced their worst performance since April 2025, following concerns about AI expenditures from Alphabet and Tesla. Bitcoin's decline was minimal, while dogecoin experienced a larger drop.
By Shaurya Malwa Jul 24, 2026, 4:43 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Bitcoin remains steady near $65,000 amid $800 billion AI market drop (Pixabay)SummaryShow- During Friday's Asian trading session, Bitcoin hovered around $65,400, showing little movement despite a significant sell-off in major U.S. tech stocks.
- On Thursday, the Magnificent Seven tech stocks lost nearly $797 billion in total market value, causing declines in the S&P 500 and Nasdaq 100, with the group now 11% down from its late-May peak.
- Fears that major tech companies are investing in artificial intelligence infrastructure more quickly than their profits can support have closely linked Bitcoin to the AI sector, yet its stability during this stock market decline suggests a potential, albeit unconfirmed, separation.
On Friday morning in Asia, Bitcoin maintained a position near $65,000, showing resilience while approximately $800 billion was wiped off the largest U.S. tech stocks - marking a unique moment of independence for an asset that has closely followed the AI trends throughout the month.
The leading cryptocurrency was trading at around $65,400, reflecting a decrease of less than 1% for the day but an increase of 3% over the week. In contrast, Ether fell by 3% to $1,879, with other major cryptocurrencies also experiencing declines. Dogecoin was the hardest hit, dropping 5% on the day to $0.069 and down 4% for the week. XRP decreased by 2% to $1.11, while Solana declined by 3% to $76, and Hyperliquid's HYPE dropped to $58, representing a 4% loss over the past week. Although these movements indicate losses, they were relatively modest compared to the turmoil in the stock market.
The term "Magnificent Seven" refers to the group of large-cap tech companies that have significantly influenced U.S. stock performance over the past three years. On Thursday, this group saw a 4.8% drop, resulting in a loss of $797 billion in market capitalization, marking their worst day since the April 2025 tariff sell-off, as reported by Bloomberg.
This decline dragged the S&P 500 down by 1.2% and the Nasdaq 100 by 1.9%, leaving these indices 11% lower than their late-May record, effectively erasing $2 trillion in value.
A major factor contributing to this downturn was increased AI spending. Alphabet updated its capital expenditure projection to potentially reach $205 billion this year, while Tesla's CEO Elon Musk described 2026 as a "massive capex year" after the company reported profits that fell short of expectations.
These announcements, made after the market closed on Wednesday, intensified existing concerns that major tech firms are investing hundreds of billions into AI infrastructure at a rate that may not be sustainable in terms of returns.
This anxiety has also influenced the crypto market throughout the month, with Bitcoin rising in response to strong performance from chip stocks and declining when they faltered, acting as a barometer for the AI capital cycle rather than reflecting its own dynamics.
The question remains whether this indicates the beginning of a genuine separation between Bitcoin and the AI sector or if it is merely a fleeting moment. Bitcoin miners have transitioned into operating AI data centers, implying that a sustained decrease in AI investment could eventually impact them as well, though the response may be slower compared to the initial surge.
However, after a month where crypto largely followed semiconductor trends, a day when the AI market faltered but Bitcoin remained stable may signal that the two are not as closely linked as previously thought.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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