Investors, both traditional and crypto, have had a rough few days. And Feb. 5 took it up a notch.
U.S. equities slid again as traders rushed into a risk-off stance, unwinding crowded bets in technology stocks and crypto. Bitcoin’s sharp sell-off only added fuel to the fire.
According to one high-profile market voice, this might not be a coincidence.
Market commentator and “Mad Money” host Jim Cramer suggested Bitcoin itself may have helped tip U.S. equities over the edge.
Related: 136-year-old investment firm predicts next Bitcoin crash
It was a rough session across the board.
The Dow Jones Industrial Average fell 592.58 points, or 1.20%, closing at 48,908.72. The S&P 500 Index slid 1.23% to 6,798.40, pushing the benchmark into negative territory for the year. The Nasdaq Composite dropped 1.59% to 22,540.59. At session lows, losses were even steeper, with the Dow down nearly 700 points.
Earnings didn’t help calm nerves. Google parent Alphabet (NASDAQ: GOOGL) rattled investors after projecting a sharp ramp-up in artificial intelligence spending, flagging potential 2026 capital expenditures of up to $185 billion. Alphabet shares slipped 0.5%, though Broadcom (NASDAQ: AVGO) bucked the trend, rising nearly 1% on optimism tied to AI infrastructure demand.
On the other side of the risk spectrum, crypto markets were in full blood bath.
Bitcoin plunged more than 10% in 24 hours, briefly touching $63,000. This was its steepest one-day drop since the FTX-driven crash of November 2022.
Crypto-linked equities followed. Shares of Coinbase (NASDAQ: COIN), Robinhood (NASDAQ: HOOD), MicroStrategy (NASDAQ: MSTR) and BitMine Immersion (NASDAQ: BMNR) fell, on average, over 10%, while miners including Bitfarms (NASDAQ: BITF), CleanSpark (NASDAQ: CLSK), and Marathon Digital (NASDAQ: MARA) posted similar losses.
By Feb. 6, crypto was attempting a cautious rebound. Bitcoin was up about 3% over 24 hours, trading near $69,070 at press time. However, it was still more than 45% below its October 2024 peak.
Stocks also bounced back more decisively. The S&P 500 rose 1.12%, the Dow gained 1.69%, and the Nasdaq climbed 1.03%, suggesting some risk appetite was returning.
Cramer didn’t mince words about what he believes triggered the equity sell-off.
