Asian chip sell-off drags crypto lower, ether drops 4%
A sharp rout in Asian semiconductor equities pulled major cryptocurrencies lower on Friday, demonstrating that digital assets remain tightly tethered to risk appetite in traditional technology sectors.
A broad sell-off in Asian semiconductor stocks spilled into cryptocurrency markets on Friday, dragging major tokens lower. Japan's Nikkei 225 slumped 5% in its worst session since March, while Taiwan Semiconductor tracked for its largest one-day decline since April 2025 and Japan's Kioxia sank as much as 16%.
Ether fell 4% to $1,850, dropping twice as hard as bitcoin. Bitcoin held up best among major tokens, easing 2% to roughly $63,400 after failing twice to breach $65,000. Hyperliquid's HYPE token was the hardest hit, plunging 10% to $60 for its steepest weekly drop since June. Solana slid 2% to $75, while XRP and BNB also lost 2%.
The synchronized move underscores how this year's artificial intelligence rally is dictating crypto price action. Just last week, bitcoin rose 4% alongside an 8% jump in South Korea's Kospi and SK Hynix's $26.5 billion American depositary share pricing. Now, investors questioning whether the AI trade moved too far, too fast are finding the answer in semiconductor stocks rather than on-chain data.
Ether's relative weakness is particularly notable given strong institutional demand. U.S. spot ether ETFs recorded nearly $97 million in inflows over the first three days of the week, outpacing last week's total. BlackRock's funds accounted for almost all of that capital, yet this structural bid failed to insulate ether from the broader risk-off sweep.
Underlying trading mechanics suggest a market pausing rather than reversing. Wintermute's OTC desk noted in an email that spot volumes fell rather than rose into the week's price highs, characterizing the action as "consolidation under resistance rather than continuation." Glassnode's onchain metrics have yet to confirm a broader trend reversal, though the Fear and Greed Index sits at 25, deep in extreme fear territory.
The crypto pullback coincides with a sharp resurgence in geopolitical risk. Brent crude jumped to $85 a barrel, posting a 12% weekly gain that marks its largest since April. A fifth day of U.S. strikes on Iran has thinned shipping traffic through the Strait of Hormuz, threatening to rekindle inflation worries that recent economic data had just calmed.
