Binance Research: From Shutdown Relief to Market Stress – How AI Weakness Impacted Crypto Markets

This week’s crypto markets saw a dramatic shift from relief following the US government shutdown to a broader market stress event. This was driven by concerns around AI technology, deteriorating economic data, and hawkish comments by the Federal Reserve. Bitcoin briefly dipped below $98,000, its lowest point since May, while gold touched a fresh one-month high before Thursday’s selloff. The sell-off was fueled by factors like weakening tech stocks (partly due to AI weakness), rising US Treasury yields and concerns about the global economic outlook.