Shares of Microsoft fell sharply on Thursday, dropping about 11% after the software giant reported rising costs and slower growth in its cloud business, adding pressure to an already fragile technology sector. The decline weighed on broader equity markets and reinforced a risk-off mood among investors, with several major tech stocks also moving lower. Traders said the earnings disappointment prompted portfolio de-risking across equities, spilling over into other risk assets as concerns mounted over slowing growth and tightening financial conditions. The selloff came against a backdrop of heightened geopolitical tension and renewed uncertainty around U.S. trade policy, further unsettling global markets and amplifying volatility across asset classes.
Cryptocurrency markets also felt the impact, with Bitcoin sliding during early U.S. trading before attempting to stabilize near key technical support levels. The price drop triggered a wave of liquidations across major crypto exchanges as overleveraged long positions were forced out. Market data showed hundreds of thousands of accounts were liquidated over a 24-hour period, with the majority tied to bullish bets on bitcoin and ether. Traders said the rapid move lower caused margin calls and stop orders to cascade, leading to brief price gaps on some platforms as liquidity thinned and volatility surged.
Macro factors played a significant role in the selloff. Analysts pointed to rising tensions in the Middle East, including recent U.S. military movements and public statements from President Donald Trump, as contributing to broader market unease. Additional pressure came from renewed tariff-related concerns linked to energy and commodity flows, which weighed on global risk sentiment. As equities and cryptocurrencies struggled, traditional safe havens moved in the opposite direction, with gold and silver pushing to fresh record highs. The divergence underscored a defensive shift by investors seeking protection from geopolitical and macroeconomic stress.
Despite the turbulence, some market participants said bitcoin’s ability to hold near longer-term support levels will be closely watched in the coming sessions. Technical analysts noted that weekly price action has remained within a broader range established over recent months, suggesting the market is testing, rather than breaking, its underlying structure. Others cautioned that continued weakness in technology stocks and persistent macro pressure could extend the correction across digital assets. For now, bitcoin’s role as a potential hedge remains under scrutiny as investors balance volatility in both traditional and crypto markets.
