Bitcoin Slumps to $62K — AI Trade Unwinds Amid Market Jitters
By John Nada·Jun 5, 2026·2 min read
Bitcoin fell to $62,715 as the AI trade faltered. Broadcom's chip outlook sent shockwaves through markets, impacting equities and cryptocurrencies.
Cryptocurrency markets, led by Bitcoin, took a nosedive as the AI-driven rally that buoyed global risk assets in 2026 lost steam.
Bitcoin skidded to $62,715 in Asian trading hours on Friday, marking a 1.9% fall for the day and a sharp 14.5% decline over the week, according to CoinDesk. Ethereum and Solana mirrored the downturn, plunging 4.8% and 5.4% respectively. This comes in the wake of Broadcom's AI chip forecast falling short of heightened expectations, which in turn dragged down the Nasdaq for the third consecutive session.
The ripple effects of Broadcom's report were felt far beyond Wall Street, pulling Asian equities into the red and weakening local currencies. South Korea's KOSPI index, a standout amidst the AI boom, nosedived 4.7%, with chipmaker SK Hynix suffering an 8% drop. Meanwhile, the Korean won continued its descent to lows not seen since 2009, as reported by CoinDesk.
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Amidst this turmoil, the narrative of high-cash-flow tokens providing a safe haven faltered. Hyperliquid's HYPE fell 14.8%, wiping out nearly all its recent gains. The story of Zcash, once a beacon of resilience, also unraveled as it surrendered its previous outperformance.
The structural bedrock of crypto markets isn't what it used to be. U.S. spot Bitcoin ETFs have logged 13 sessions of net outflows, draining $4.4 billion since mid-May. This eroded a critical support pillar that buoyed Bitcoin for 18 months. Moreover, Strategy made its first Bitcoin sale in years, unloading 32 BTC to meet dividend obligations. These moves collectively siphon off the support that Bitcoin has leaned on.
Eyes now turn to the U.S. nonfarm payrolls report due Friday. CoinDesk suggests that a weak jobs number could reignite hopes for Federal Reserve cuts under new Chair Kevin Warsh, potentially lifting the AI trade—and crypto—back up. A stronger report, however, might just as easily reinforce the current downward trajectory. It's a delicate balance, hinging on the data that could steer markets either way.