Bitcoin News Today: Global Markets Reel as AI Bubble Fears and Trade War Jitters Trigger Synchronized Collapse

Global markets reeled from a synchronized sell-off on November 5, as the US stock market, Asian indices, and Bitcoin all plummeted amid growing fears of a broader economic correction. The Nasdaq Composite plunged over 2% as tech giants like NVIDIA and Tesla fell more than 5%, signaling a sharp reversal of fortunes for the sector that had driven year-to-date gains, according to BiyaPay analysts. Asian markets mirrored the decline, with South Korea's KOSPI and Japan's Nikkei 225 tumbling 4% and 2.7%, respectively, according to a MarketBeat article. Meanwhile, Bitcoin slid below $100,000 for the first time in three months, with losses exceeding $1.3 billion in crypto liquidations across exchanges, per a Yahoo Finance analysis. Analysts pointed to a confluence of factors: a strengthening US dollar, shifting Federal Reserve rate-cut expectations, and heightened geopolitical tensions over potential trade war risks, the BiyaPay analysts added.

The tech sector bore the brunt of the selloff, with SoftBank Group's shares cratering 14% as its market capitalization shrank by $32 billion, according to a Times of India article. The Japanese conglomerate's AI-linked investments, including Arm Holdings and OpenAI, faced scrutiny as valuations across the sector reached levels reminiscent of the dot-com bubble. "There is fear of an AI correction," wrote Louis Navellier, a market veteran, noting that the S&P 500's forward P/E ratio had surpassed 23, the highest since 2000. The rout extended to semiconductor firms like Advantest and Renesas, which lost 8% and 5.48%, respectively, as investors recalibrated expectations for AI-driven growth, MarketBeat reported.

Cryptocurrency markets fared no better. Bitcoin's decline to $99,908 on Coinbase—its lowest since late June—coincided with Ethereum's steepest monthly drop in months, according to a Yahoo Finance piece on Coinbase. The cryptocurrency's struggles were compounded by outflows from US spot Bitcoin ETFs, which recorded $187 million in redemptions on November 3, as noted in the earlier Yahoo Finance analysis. Analysts at 10x Research advised investors to hedge BTC exposure by shorting ETH, citing weak demand for Ethereum and declining capital inflows.

The sell-off unfolded against a backdrop of political uncertainty. The US Supreme Court's decision to hear a case on Trump-era tariffs reignited trade war fears, while New York's mayoral election highlighted shifting demographics and political dynamics. Zohran Mamdani, a 34-year-old democratic socialist of Indian origin, made history as the city's first South Asian mayor, defeating former Governor Andrew Cuomo and Republican nominee Curtis Sliwa, as detailed in an Economic Times profile. His victory, coupled with record-breaking runs by Indian-American candidates like Virginia's Ghazala Hashmi, underscored the growing influence of diverse communities in American politics, according to another Economic Times report.

Amid the turmoil, some firms are positioning for long-term opportunities. Texas-based B2B software company o9 Solutions, which operates a cloud-native AI platform for supply chain optimization, sees Asia as its next growth frontier. CEO Chakri Gottemukkala noted that Indian clients, many with revenues exceeding $2 billion, are increasingly adopting AI-driven solutions to navigate volatile markets.

As markets grapple with the fallout, the path forward remains uncertain. BiyaPay analysts warned that high-valuation tech stocks and cryptocurrencies could face prolonged pressure, urging investors to adopt flexible strategies in a landscape defined by volatility.