#GlobalTechSell-OffHitsRiskAssets

Global Tech Sell-Off Crushes Risk Assets: AI Bubble Fears, Massive Capex Panic, and Crypto Bloodbath in Early February 2026
The global tech sell-off has exploded into one of the most violent risk-off rotations of 2026 so far, hammering everything from Big Tech giants to cryptocurrencies, precious metals, and high-beta equities. What started as concern over runaway AI infrastructure spending has snowballed into a classic post-euphoria flush, with trillions in market value erased and sentiment flipping from greed to extreme fear overnight.
Headline-Level Damage Snapshot (February 8, 2026)
Tech Sector Carnage:
Nasdaq Composite: Worst three-day rout since April 2025, down 4–6% weekly in peak sessions, testing 22,500–23,000 zone before sharp Friday rebound (+2.2%).
Magnificent 7 wipeout: Over $1–1.8 trillion in combined market cap destroyed in one week. Amazon tanked ~10–12% after unveiling $200B 2026 capex (mostly AI/data centers, ~$55B above consensus). Alphabet dropped sharply on $175–$185B spend plan (55%+ over estimates). Microsoft, Nvidia, Meta, Oracle, Salesforce saw 5–15%+ declines amid AI disruption fears (tools like Anthropic automating software jobs).
Software/SaaS index: ~$1 trillion lost since late January — traditional SaaS models under existential threat from generative AI.
Crypto & Risk-Asset Spillover:
Bitcoin: Crashed to ~$60,000–$61,000 lows (briefly sub-$60K on Feb 6), now recovering around $69,000–$69,300. ~45–50% drawdown from 2025 peak (~$126K), ~28% YTD loss, one of the biggest single-day drops since 2022 (~15%).
Total crypto market cap: Plunged from ~$4.4T October high to ~$2.3–$2.4T, losing ~$800B in the past month alone.
Altcoins/exchange tokens (ETH, SOL, GT, etc.): Down 20–35%+ in sessions — higher beta means they bleed harder in risk-off.
Liquidations: Over $1B+ in BTC liquidations in 24h spikes; global crypto volume exploded on panic sells then thinned dramatically, amplifying every move downward. Stablecoin outflows drained billions in liquidity.
Precious Metals & Broader Markets:
Silver: Brutal 18–20% plunge after prior surge.
Gold: Sharp correction (less severe but still sold off heavily).
Equities: S&P 500 & Dow down 1–2% in rout days; global MSCI index -1%+. Friday rebound was fierce (Dow +1,200+ points to new highs above 50K, Nasdaq/S&P +~2%), but chop remains extreme.
Core Reasons This Is Happening (Extended Breakdown)
AI Capex Overextension & Bubble Panic
Big Tech’s 2026 capex forecasts hit ~$600–$650B+ combined — Amazon $200B, Alphabet $175–$185B, Microsoft/Meta heavy spenders. Investors fear delayed ROI, margin compression, and an “AI bubble” bursting like past tech hypes. Massive data-center and chip investments raise doubts about profitability timelines.
Macro & Fed Headwinds
Disappointing US jobs prints → hawkish Fed narrative (slower rate cuts, higher-for-longer). Stronger USD, rising Treasury yields earlier then dip on safe-haven flows, geopolitical noise — all crushing risk appetite.
Liquidity Squeeze & Leverage Unwind
Post-2025 boom trading thinned out massively. Small sells triggered cascading stops, margin calls, and ETF outflows (spot BTC/ETH ETFs heavy red). High correlation (BTC-Nasdaq/software ~0.73–0.91) turned tech weakness into crypto contagion.
Sentiment Collapse & Rotation
Fear & Greed Index in extreme fear territory. “Sell everything” mode hit — investors rotated from AI/tech/crypto/metals into Treasuries and defensives. No fresh bullish catalysts to stop the bleed.
Price, Percentage, Liquidity & Volume Details
Price Levels & % Moves:
BTC: Peak $126K → low ~$60K (–52%), current ~$69K (still –45% from high).
Nasdaq: Weekly –4–6%, session lows –7–8% intraday in worst cases.
Amazon: –10–12% single session.
Silver: –18–20% correction.
Total crypto cap: –~48% from Oct peak.
Volume & Liquidity Dynamics:
Crypto: Panic volume spikes (highest since 2022 crashes) then dried up — thin books mean 1–2% sells become 10%+ drops.
Equities: Heavy selling volume early week, then rebound volume on Friday (institutional dip-buying?).
Liquidations: $1B+ BTC in 24h multiple times; leveraged positions flushed hard.
What Happens Next? Realistic Scenarios
Base Case (60–70% Probability – Shallow Reset): Friday’s violent rebound signals exhaustion. If AI fears prove overblown (like 2025 DeepSeek scare), macro calms, and volume supports upside, expect consolidation then rotation back. BTC could retest $70–$80K, Nasdaq stabilize, tech names rebound.
Bear Case (30–40% Probability – Deeper Pain): Persistent AI doubts + weak data = more downside. BTC toward $54–$60K historical reversion, Nasdaq lower supports, silver/gold further unwind. Short-term “crypto winter” extension possible, but still mid-cycle correction.
Key levels to watch: BTC $65–$67K support retest critical, $70–$71K resistance. Nasdaq 22,500–23,000 zone. Upside volume surge = reversal green light.
This flush is brutal but textbook after explosive euphoria — it clears leverage, resets valuations, and often precedes the next leg up. Stay disciplined: preserve capital, avoid leverage traps, wait for confirmed signals or scale in gradually if you’re long-term bullish on AI/tech/crypto.