2. The AI trade cracks — OpenAI delays its IPO

On June 25, The New York Times reported that OpenAI was considering postponing its IPO until the next year, citing three people familiar with the company's discussions . Bloomberg also reported that OpenAI was leaning toward holding off on an IPO until 2027, citing the New York Times report . OpenAI had disclosed earlier in June that it had submitted confidential documents to regulators to begin the IPO process, but had not publicly committed to a timing window . The delay added to the anxiety around AI valuations at the same time that chip and device stocks were already under pressure from component-cost concerns. SoftBank Group's stock fell as much as 13% on concerns that the delay would push back returns for its Japanese backer .

3. A large Bitcoin options expiry adds mechanical selling pressure

Friday June 26 was the date for a major Bitcoin options expiry, with roughly $13 billion in Bitcoin options open interest set to expire . MEXC described the derivatives landscape as skewed in a way that pointed toward near-term downside risk for Bitcoin bulls, noting that put options (sell) were positioned more favorably than call options (buy) . Cointribune also described the June 26 expiry as a major deadline, with nearly $13 billion worth of Bitcoin options contracts expiring, mostly concentrated on Deribit . Because most of those options were bullish bets stacked at $68,000 or higher, and Bitcoin was trading near $63,000, roughly 80% of the $10.6 billion in open interest was "out of the money" — meaning a large portion of bullish contracts would expire worthless . That meant the crypto market was facing a large derivatives event at the same time broader risk appetite was weakening.

4. Tech rout spreads from equities into crypto

The Nasdaq-led selloff — driven by chip stocks — spilled into digital assets through the equity-crypto correlation channel . Bitcoin fell as much as 3.9% to $61,877 on June 23, its lowest level since June 11, as a tech-stock selloff hit risk assets . The session saw $717 million in crypto liquidations, which amplified what began as an equity-driven move into something that resembled a crypto-specific event . As one analysis put it: "It wasn't. The origin was outside the market — a Nasdaq chip stock decline that activated the risk-correlation channel" .

How They All Connect

• Rising chip costs → Apple and Microsoft raise prices → fears that higher prices will slow consumer electronics demand → concern that the memory chip rally — which powered much of the AI trade — is peaking .
• That fear collides with OpenAI's IPO delay, which weakens the AI-valuation narrative that had been supporting sentiment around the sector .
• The resulting tech stock rout bleeds into crypto through cross-asset risk-off correlations and is amplified by a large Bitcoin options expiry on the same Friday .
• The whole system was already fragile because tech stocks, AI-linked equities, and crypto were being treated as connected risk assets rather than isolated markets .

What Did Not Happen: A Rotation Out of Crypto Into Tech

A common question is whether this selloff was driven by a "rotation out of crypto into tech stocks." The evidence in the provided sources does not support that framing. Instead, both fell together as part of a broader risk-off move, with the tech selloff spilling into digital assets through equity correlation . Crypto was not sold to buy tech; it was swept down by the same tide.

The Macro Backdrop

The provided sources do not independently establish a Fed-policy trigger as a primary driver for this specific rout. While earlier in the month a strong jobs report had killed rate-cut expectations and triggered a separate selloff , the better-supported story for the June 26 event is that component-cost pressure, AI-valuation anxiety, a tech-stock selloff, crypto-equity correlation, and a large Bitcoin options expiry all hit at the same time .

2. The AI trade cracks — OpenAI delays its IPO

On June 25, The New York Times reported that OpenAI was considering postponing its IPO until the next year, citing three people familiar with the company's discussions . Bloomberg also reported that OpenAI was leaning toward holding off on an IPO until 2027, citing the New York Times report . OpenAI had disclosed earlier in June that it had submitted confidential documents to regulators to begin the IPO process, but had not publicly committed to a timing window . The delay added to the anxiety around AI valuations at the same time that chip and device stocks were already under pressure from component-cost concerns. SoftBank Group's stock fell as much as 13% on concerns that the delay would push back returns for its Japanese backer .

3. A large Bitcoin options expiry adds mechanical selling pressure

Friday June 26 was the date for a major Bitcoin options expiry, with roughly $13 billion in Bitcoin options open interest set to expire . MEXC described the derivatives landscape as skewed in a way that pointed toward near-term downside risk for Bitcoin bulls, noting that put options (sell) were positioned more favorably than call options (buy) . Cointribune also described the June 26 expiry as a major deadline, with nearly $13 billion worth of Bitcoin options contracts expiring, mostly concentrated on Deribit . Because most of those options were bullish bets stacked at $68,000 or higher, and Bitcoin was trading near $63,000, roughly 80% of the $10.6 billion in open interest was "out of the money" — meaning a large portion of bullish contracts would expire worthless . That meant the crypto market was facing a large derivatives event at the same time broader risk appetite was weakening.

4. Tech rout spreads from equities into crypto

The Nasdaq-led selloff — driven by chip stocks — spilled into digital assets through the equity-crypto correlation channel . Bitcoin fell as much as 3.9% to $61,877 on June 23, its lowest level since June 11, as a tech-stock selloff hit risk assets . The session saw $717 million in crypto liquidations, which amplified what began as an equity-driven move into something that resembled a crypto-specific event . As one analysis put it: "It wasn't. The origin was outside the market — a Nasdaq chip stock decline that activated the risk-correlation channel" .

How They All Connect

• Rising chip costs → Apple and Microsoft raise prices → fears that higher prices will slow consumer electronics demand → concern that the memory chip rally — which powered much of the AI trade — is peaking .
• That fear collides with OpenAI's IPO delay, which weakens the AI-valuation narrative that had been supporting sentiment around the sector .
• The resulting tech stock rout bleeds into crypto through cross-asset risk-off correlations and is amplified by a large Bitcoin options expiry on the same Friday .
• The whole system was already fragile because tech stocks, AI-linked equities, and crypto were being treated as connected risk assets rather than isolated markets .

What Did Not Happen: A Rotation Out of Crypto Into Tech

A common question is whether this selloff was driven by a "rotation out of crypto into tech stocks." The evidence in the provided sources does not support that framing. Instead, both fell together as part of a broader risk-off move, with the tech selloff spilling into digital assets through equity correlation . Crypto was not sold to buy tech; it was swept down by the same tide.

The Macro Backdrop

The provided sources do not independently establish a Fed-policy trigger as a primary driver for this specific rout. While earlier in the month a strong jobs report had killed rate-cut expectations and triggered a separate selloff , the better-supported story for the June 26 event is that component-cost pressure, AI-valuation anxiety, a tech-stock selloff, crypto-equity correlation, and a large Bitcoin options expiry all hit at the same time .