A tech-led sell-off across the U.S. and four Asian markets has erased $1.7 trillion in market cap, adding pressure on crypto. Bitcoin sits more than 30% below its pre-crash high, and some analysts compare the setup to the 2022 cycle.
Markets in the U.S, Japan, South Korea, China and Taiwan combined to wipe $1.7 trillion off their market cap over the last 24 hours. Tech stocks were hit particularly hard after a flurry of earnings reports revived the "AI bubble" narrative.
Alphabet lost more than 12% of its market value, which shows how quickly sentiment can turn when AI expectations collide with earnings.
Election odds add macro pressure
The timing of the sell-off adds another layer of pressure to crypto. According to the Kobeissi Letter, the probability of a Democratic sweep in next week's U.S mid-term elections rose by 7% to a record high of 72% over the last 2 days.
Bitcoin and the 2022 playbook
Bitcoin is still down over 30% from its pre-crash high of $126K, more than a year after the October 2025 crash. The Binance hack and the tech sell-off add to the uncertainty, and AMBCrypto writes that the market seems to have a long way to go before any real recovery.
Some analysts point to 2022 for clues. The FTX collapse came about a year after BTC's November 2021 high, in line with the cycle bottom in late Q4 2022, when BTC dropped to $16K. A 155% rally followed, then another 120% run that pushed Bitcoin close to $108K by 2024.
Based on historical trends cited by AMBCrypto, Bitcoin falling below $80K and the broader sell-off could allude to later phases of a crypto bottom. With macro uncertainty building, the market could be heading into the final stage of capitulation before a bounce back. AMBCrypto adds that the risk-off trend will likely continue through year-end before a 2023-style uptrend.
Source: AMBCrypto
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