Microsoft drops 11%, intensifying the sell-off in risk assets

Microsoft shares fell 11% after the company reported rising operating expenses and slowing growth in its cloud division. The news sparked a tech-sector sell-off and prompted capital to flow out of risk assets, including cryptocurrencies.

Bitcoin dropped sharply at the start of the U.S. session, triggering a broad wave of liquidations. Over the past 24 hours, roughly 270,000 leveraged positions were liquidated across exchanges, with more than 90% of the losses hitting BTC and ETH longs. The spike in volatility caused price gaps on some platforms and widespread stop-loss cascades.

Geopolitical factors added pressure. Analysts noted that rising tension in the Middle East – including the deployment of a U.S. warship and remarks from President Donald Trump – weighed on global markets. Rumors of potential tariff measures tied to oil shipments added another layer of uncertainty.

Against this backdrop, bitcoin retreated to a key support zone where it has held for several weeks. Technical analysts say BTC has been closing candles within a narrow range, and the latest move is a test of the boundaries of its medium-term channel.

The downturn hit nearly all major cryptoassets: ether fell 6%, BNB dropped 5.7%, Solana slid 5%, and XRP lost 5.4%. Meanwhile, gold and silver set new all-time highs, underscoring a shift in demand toward defensive assets.

Some analysts argue the market reaction is excessive, pointing out that the correction began in October and simply accelerated under news pressure. Others warn that if macroeconomic risks persist, cryptocurrencies could continue to decline.

Analyst Benjamin Cowen said bitcoin may keep lagging equities in the near term as investors favor lower-volatility assets. He also does not expect a quick rotation from gold into crypto – precious metals are in a firm uptrend and currently serve as a “safe harbor” for capital.

The market remains under simultaneous macro, geopolitical, and technical pressure, and bitcoin’s next moves will depend on whether it can hold current support while risk aversion dominates global trading.