Bitcoin dropped below $71,000, falling as much as 7.5% during Asian trading hours. This decline was part of a broader selloff in global technology stocks, driven by concerns over stagnant AI investment, inflated valuations, and disappointing earnings. Asian equities, particularly in South Korea, saw significant losses, contributing to the downward pressure on risk assets like Bitcoin. The cryptocurrency's recent drop highlights its status as a high-beta asset, especially amid thinning liquidity and increasing macroeconomic uncertainty. Bitcoin’s price had fluctuated earlier in the week, briefly touching $73,000 before rebounding above $76,000, but the latest decline signals a fragile market sentiment. Wenny Cai, COO at Synfutures, noted that this movement below the low-$70,000s has intensified a broader deleveraging trend, indicating a shift in market dynamics from speculative positioning to more cautious trading. Commodity markets also faced turbulence, with silver plummeting 17% and gold dropping over 3%. These shifts have triggered heavy liquidations in crypto markets tied to commodities. Despite Bitcoin's recovery above $70,000 in response to cooling U.S. inflation data, the Crypto Fear & Greed Index remains at “extreme fear,” reflecting ongoing market anxiety. In the past week, $8.7 billion in Bitcoin losses were realized, suggesting a potential capitulation event as the supply of Bitcoin shifts to more resilient holders.