Bitcoin Plummets to $62,715 Amid AI Trade Selloff and Broad Market Decline

Bitcoin's price has been impacted by a broader decline in the artificial intelligence trade, with its value plummeting to $62,715 on Friday. This sudden drop is attributed to Broadcom's weak AI chip outlook, which has triggered a ripple effect across markets.

The Nasdaq 100 futures fell 1.2% on Friday, marking a third straight day of losses. South Korea's KOSPI dropped 4.7%, and chipmaker SK Hynix fell 8%. The MSCI Asia-Pacific index was down 1.4%.

Bitcoin ETF outflows have added pressure to the crypto market, with US spot Bitcoin ETFs posting 13 straight sessions of net outflows totaling around $4.4 billion since mid-May. This has removed a key source of buying support that had held up Bitcoin for much of the past 18 months.

The next major event for markets is the US nonfarm payrolls report on Friday, which could provide crucial clues on Federal Reserve policy and market direction. A weaker-than-expected report could revive expectations for rate cuts under newly confirmed chair Kevin Warsh, while a stronger report could push markets lower.