China’s STAR50 Tech Index Falls 40% Amid $480 Billion Market‑Value Loss, Bitcoin Gains 27%

China’s STAR50 index, tracking 50 large tech firms on Shanghai’s tech board, dropped from 2,185.83 on July 9 to 1,315.5 on October 26, a 39.8% decline over 71 trading sessions, eroding roughly $480 billion in market value according to Reuters. During the same period, Bitcoin’s price rose 26.6%, showing a divergent move from the tech‑heavy equity market. The STAR50 fall reflects a sharp repricing of China’s technology sector rather than the entire AI industry, and its magnitude is rare, sitting deep in the downside tail even compared to historical US tech index crashes. The contrast between the equity sell‑off and Bitcoin’s gain highlights the question of whether the Chinese equity downturn could spill over into broader funding pressures that might eventually affect crypto markets.