The two largest cryptocurrencies ended the trading session with little change, even as the stock market experienced a sharp sell-off in companies producing hardware for artificial intelligence and high-performance computing.
Bitcoin remained near $61,400, while Ethereum traded around $1,700. Meanwhile, the U.S. technology index declined by approximately 0.8%, and the semiconductor sector index dropped by more than 5%.
Despite weakness in technology stocks, the broader U.S. market remained relatively resilient. The leading industrial index reached a new record high, while the broad-market benchmark finished nearly unchanged. Most of the selling pressure was concentrated in semiconductor-related companies.
Market volatility indicators also showed mixed signals. The broader volatility index moved lower, while the technology-focused volatility gauge edged higher, suggesting that investors were reducing exposure mainly within the tech sector rather than pulling away from risk assets altogether.
Over two trading sessions, semiconductor stocks fell by roughly 11%. The decline was driven by concerns that companies benefiting from the rapid expansion of AI infrastructure may have reached overly optimistic valuations. Some market analysts noted that indicators measuring the risk of a valuation bubble in the semiconductor industry have climbed close to their highest levels.
Asian markets recovered during the following session, with most major regional indices posting gains. Several leading memory and electronics manufacturers advanced by nearly 10–11%, recovering part of their recent losses.
Another key driver for financial markets was the release of the latest U.S. labor market data. Job creation came in below expectations, while the unemployment rate stood at 4.2%.
The softer employment figures strengthened expectations that monetary policy could remain less restrictive. Following the report, the U.S. dollar weakened and yields on short-term government bonds declined, developments that are generally viewed as supportive for risk assets, including cryptocurrencies.
However, the digital asset market continues to face its own headwinds. During June, U.S. spot exchange-traded funds tracking Bitcoin and Ethereum recorded combined net outflows of more than $4.5 billion.
Shares of cryptocurrency mining companies underperformed both major digital assets. Several miners saw their stock prices fall between 7% and 12% over the course of the day, significantly lagging behind Bitcoin’s performance.
At the same time, the industry continues to shift its focus. More mining operators are repurposing power infrastructure and computing facilities to support AI data centers and high-performance computing workloads. Some market participants have also begun winding down certain Bitcoin mining operations.
Bitcoin closed June down by approximately 20%, briefly falling below the $60,000 level and marking its weakest monthly performance in several years.
