Microsoft stock plunges 11% as Bitcoin traders seek refuge amid broader tech selloff
Bitcoin slides to key support as overleveraged longs are wiped out, Middle East tensions rise, tech stocks wobble, and gold and silver hit fresh highs.
- A sharp Bitcoin drop triggered hundreds of thousands of liquidations, with most wiped positions in BTC and ETH longs.
- Middle East tensions, Trump’s latest statements, tariff chatter, and weak Microsoft earnings hit risk assets, including crypto.
- Analysts see BTC testing a key higher‑timeframe range as gold and silver print records, warning correction could extend if macro stress persists.
Microsoft’s earnings report, which showed rising costs and slower growth in cloud services, are weighing on investor sentiment as the broader sell-off in the tech sector continues.
Several major technology stocks declined following the results, leading some investors to reduce exposure to both equities and cryptocurrencies, traders said.
Bitcoin (BTC) fell sharply during early U.S. trading this week, triggering widespread liquidations across cryptocurrency exchanges, according to data from crypto.news.
Approximately 270,000 accounts were liquidated across exchanges in the past 24 hours, with total liquidations reaching significant levels, the data showed. More than 90% of the liquidated contracts were long positions, primarily in Bitcoin and Ether, according to reports.
The rapid price decline forced margin calls and triggered stop orders across trading platforms. Price gaps appeared on some exchanges as volatility increased, according to market observers.
Heightened tensions in the Middle East contributed to the selloff, analysts said. A U.S. warship deployment and public statements from U.S. President Donald Trump increased pressure on risk assets. An executive action related to tariffs on goods tied to certain oil transactions raised additional concerns among global traders, according to market participants.
Bitcoin was trading near a higher-timeframe support level that has been significant in recent months, according to technical analysts. Weekly price closes have remained within a recent range for several weeks.
The broader cryptocurrency market lost significant value across multiple tokens during the decline, according to market data.
Analyst Benjamin Cowen stated that Bitcoin may continue to underperform relative to stocks, suggesting that a rapid shift from gold or silver into cryptocurrency may not occur quickly. Gold and silver have climbed to record levels, according to Trading Economics.
Some analysts characterized the market reaction as excessive, noting that prices had been declining since October. Others warned that a prolonged correction could continue if macroeconomic pressures persist.
