Crypto Markets Track Binance Hack Fallout and Tech Selloff Fueled by AI Investment Fears

The cryptocurrency market remained under pressure following Binance’s estimated $6.3 billion security breach, while concerns over expensive artificial intelligence investments and weaker corporate forecasts drove another sharp decline in technology stocks. The Invesco QQQ ETF fell more than 2% as investors reconsidered the outlook for major technology companies.

Gold Falls Below $4,000 as Precious Metals Continue Sliding

Gold and silver extended their declines on Friday, offering little protection against the weakness spreading through global financial markets.

Gold dropped 1.5% to approximately $3,970 per ounce, continuing a correction that has erased a significant portion of its gains after reaching above $5,300 earlier this year.

Silver declined 4.3% to roughly $50 per ounce, putting it more than 50% below its February peak above $100.

Platinum and palladium also moved sharply lower, reflecting the broader retreat across precious metals.

France Faces Economic Stagnation as Inflation Accelerates

France’s economy unexpectedly contracted in the third quarter, with GDP falling 0.1%, according to government figures. The economy had already recorded a 0.2% decline in the first quarter, followed by no growth in the second.

Meanwhile, inflation accelerated to 3.4% in October from 3.1% a month earlier, creating another challenge for policymakers.

Finance Minister Roland Lescure described the country’s economy as stagnant and warned that failure to implement the recovery measures outlined in the budget could lead to serious economic difficulties.

French bond markets also weakened. The country’s 10-year OAT yield climbed nine basis points to 4.97%, while Germany’s 10-year Bund yield slipped two basis points to 3.339%.

Treasury Yields Decline as Fed Rate Hike Bets Fall

The technology market downturn prompted investors to move toward government bonds, pushing U.S. Treasury yields lower and reducing expectations of another Federal Reserve rate increase in December.

The 10-year Treasury yield dropped eight basis points to 4.90% early Friday, its lowest level since before the Fed’s September rate decision. The two-year yield also declined nine basis points to 4.655%.

Markets now place the probability of a December rate hike at 70%, down from nearly 90% during Fed Chair Kevin Warsh’s press conference on Wednesday.

Nasdaq 100 futures dropped 2.7% to session lows, led by a roughly 25% decline in Intel and a 7% fall in Amazon following disappointing earnings guidance.

WTI Crude Climbs to $104

Oil prices added to market uncertainty, with West Texas Intermediate crude rising approximately 1% over 24 hours to $104 per barrel.

The increase brought WTI close to a 50-day high. Traders are monitoring whether prices can surpass September’s peak of just under $107 per barrel.

Binance Uncovers Further Security Weaknesses in $6.3 Billion Hack

Binance’s investigation into its estimated $6.3 billion security breach has expanded after investigators identified additional potential points of compromise.

The exchange initially suspected that an employee’s laptop had been compromised, allowing attackers to access its internal systems. However, a subsequent investigation revealed other possible entry points, Binance said in a Friday update on X.

The exchange confirmed that unauthorized outflows had stopped following the suspension of withdrawals. It continued to target a resumption of withdrawal services within approximately 45 hours.

Binance has also frozen roughly $3 billion in stolen assets with assistance from blockchain partners and law enforcement.

CZ Urges Elon Musk to Stop Mocking Binance After Hack

Binance founder Changpeng Zhao criticized Elon Musk’s reaction to the exchange’s security breach after the billionaire posted a grimacing emoji beneath a discussion about the estimated losses.

Zhao asked Musk to stop trolling, saying the timing was inappropriate despite his respect for the Tesla and SpaceX chief.

He also recalled Binance’s $500 million investment in Musk’s Twitter acquisition in October 2022. Zhao said the investment had since increased in value to more than $1 billion.

Binance originally backed the takeover to encourage closer connections between social media and cryptocurrency. Zhao ended his response by asking Musk to offer some support during the difficult period.

Intel and Amazon Slide as AI Investment Costs Worry Investors

Technology shares extended their losses as investors questioned whether growing artificial intelligence investments would generate sufficient returns.

Intel plunged approximately 25% after its fourth-quarter forecast disappointed investors, despite reporting 21% revenue growth to $16.51 billion. Its data center and AI revenue increased 78%, but supply constraints and weaker PC demand weighed on the outlook.

The chipmaker also raised its planned 2026 capital expenditure to $20 billion, adding to concerns about the industry’s rising investment requirements.

Amazon reported a 12% increase in revenue to $201.9 billion, while AWS sales surged 39% to $46 billion. However, weaker retail demand affected its fourth-quarter outlook.

The company raised its 2026 capital expenditure forecast to $220 billion. Its annual free cash flow also fell to negative $42.4 billion as spending on AI infrastructure increased.

The downturn also affected AI infrastructure companies. Cipher Mining, TeraWulf and IREN each declined approximately 5%.

Bitcoin briefly fell below $77,000 following the Binance incident before recovering to just under $78,000. Gold and silver also continued to lose ground, demonstrating that the latest market selloff has extended well beyond cryptocurrencies and technology stocks.