Bitcoin dipped toward $86,000 on Thursday as Asian markets opened softer, extending a risk-off swing that hit both crypto and equities after a sharp tech-led slide on Wall Street.
The pressure built overnight as investors cut exposure to high-multiple technology names and the broader AI trade, a shift that usually spills into crypto when momentum fades.
In early Asia, shares in Japan and Australia fell and Hong Kong shares pointed lower.
Market snapshot
- Bitcoin: $86,575, down 1.1%
- Ether: $2,832, down 4.2%
- XRP: $1.86, down 3.7%
- Total crypto market cap: $3 trillion, down 1.5%
Tech Rout Deepens As AI Valuation Fears Grip Wall Street
In the US, the tech-heavy Nasdaq 100 dropped 1.9% on Wednesday. Nvidia slid 3.8% to its lowest since September, and the S&P 500 fell 1.2% to a three-week low, slipping under its 50-day moving average.
The selling gathered pace as investors questioned whether the companies at the center of the AI boom can continue to justify their lofty valuations and heavy spending. Concerns around the cost and viability of data centre expansion added to the unease, with traders watching how big-ticket financing plans ripple through the sector.
Oracle fell 5.4% after a report said its largest data centre partner, Blue Owl Capital, will not back a $10B deal for its next facility.
Amazon slipped 0.6% after a report said it is in talks to invest about $10B in ChatGPT maker OpenAI, and Alphabet dropped 3.2% after a Reuters report said Google is working on an effort, alongside Meta, to erode Nvidia’s software advantage.
The chip complex took a broader hit. Broadcom fell 4.5% and the Philadelphia Semiconductor Index dropped 3.9%, reinforcing a market mood that has turned more sensitive to any sign that the AI buildout may deliver profits slower than hoped.
Crypto Awaits CPI As Bitcoin Hovers Without Clear Support
For Bitcoin, that backdrop kept the move heavy and the bounce restrained. Mike Marshall, head of research at Amberdata, said the key is that the “support bid” has not shown up in size.
“We are seeing weak market structure beneath price and relatively light ETF inflows, which reduces the market’s ability to stabilize quickly when momentum flips. Broader macro worries around rates, growth uncertainty, and cautious risk sentiment are compounding it.”
“In this environment, the market tends to probe until it finds a level where buyers have conviction. Based on our ETF cost-basis analysis, the first meaningful floor is near $80K, and if we see sustained outflows or tighter financial conditions, $60K becomes the next major reference,” he said.
Rate markets reflected the same caution. Comments from Federal Reserve Governor Christopher Waller, often viewed as dovish, supported demand for two- and five-year Treasuries, and longer-dated bonds lagged, nudging the 10-year yield about one basis point higher to roughly 4.15%.
Traders now turn to Thursday’s consumer inflation data, which could reset rate expectations into year-end and decide whether crypto stabilizes near current levels or keeps probing for a clearer floor.
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