Risk-off wave drags bitcoin below $63,000 as AI selloff spreads from stocks to crypto

MarketsRisk-off wave drags bitcoin below $63,000 as AI selloff spreads from stocks to cryptoCrypto fell as AI stock fatigue and U.S.-Iran tensions weighed on sentiment, though a technical measure hints at oversold conditions heading into the weekend.By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback Jul 17, 2026, 10:26 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowBitcoin fell 1.2% and ether 1.74% as a selloff in semiconductor stocks from Asia to North America and renewed Middle East tensions drove a broad risk-off move, lifting gold back above $4,000.Privacy coins were among the few bright spots, with ZEC and DASH both advancing. AI tokens FET and TAO rose despite the sector struggling to sustain momentum since mid-June.The average relative strength index (RSI) across crypto pairs dipped to 42.23, approaching the oversold territory that triggered July's relief bounce and offering bulls a potential foothold heading into the weekend.The crypto market fell Friday, with bitcoin BTC$63,136.85 recovering from a drop below $63,000 to trade down 1.2% since midnight UTC and ether (ETH) losing 1.74%. Total crypto market capitalization shed 1.86% to sit at $2.16 trillion.The selloff is not isolated to crypto. Nasdaq 100 index futures dropped 1.91% and S&P 500 futures slipped 0.96%, pointing to macro forces driving the move rather than anything crypto-specific. Japan’s Nikkei 225 index dropped 4%, while South Korea’s Kospi stock exchange was closed for Constitution Day.In a a classic risk-off rotation, the Dollar Index (DXY) rose to 100.75 while gold advanced 0.61% to climb back above $4,000.The move to the downside can be attributed to a selloff in tech stocks across North America and Asia, as well as mounting tensions in the Middle East. "The market is ending the week with two bruises: AI fatigue and Hormuz heat,” said Patrick Munnelly at Tickmill Group. “The semiconductor selloff …

Risk-off wave drags bitcoin below $63,000 as AI selloff spreads from stocks to crypto

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