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Tech Buyouts, Bitcoin Markets Slump

Wall Street Journal Markets •
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Global tech private equity buyouts plunged to $20 billion in the first quarter, a staggering 70% decline from the $65 billion recorded in the previous quarter. Bain & Co. attributes this collapse to uncertainty about AI's disruptive influence on software company valuations, which fell roughly 8% on average for private equity holdings through March. European software valuations proved more resilient, declining just 4.2% compared to 8.9% in the U.S.

Bitcoin markets continued their downward trend, with short-term investors experiencing their worst week since January 2015. While not as severe as the 2015 crash, recent buyers faced extreme pain as ETFs saw $91.4 million in net outflows on Monday, continuing the negative trend of recent weeks. The cryptocurrency dropped another 1.9% to $62,257, erasing roughly $20,000 in value since mid-May.

The broader market sentiment remains cautious as Bitcoin ETFs face persistent outflows despite moderating liquidations. Ethereum, XRP, and Solana also posted declines, with President Trump's comments about a potential Middle East peace agreement adding further volatility. The cryptocurrency sector continues to grapple with investor uncertainty, with no immediate recovery in sight.