Bitcoin dropped 2.49% on July 25, trading at $63,956 with $22.84 billion in volume, according to CoinMarketCap. The decline came as the Nasdaq-100 index hit an 11-week low — its lowest point since May 5 — dragged down by fears that big tech companies are overspending on artificial intelligence infrastructure.
Nasdaq-100 hits 11-week low
The tech-heavy index fell sharply this week, with investors growing uneasy about the scale of AI-related capital expenditures from companies like Microsoft, Alphabet, and Amazon. The selloff erased weeks of gains and pushed the Nasdaq-100 to levels not seen since early May. The move underscores a growing skepticism that the massive spending on AI data centers and chips will deliver returns quickly enough to justify the costs.
Bitcoin's tech-driven slide
Bitcoin has increasingly moved in tandem with high-growth tech stocks, and Thursday's price action was no exception. The 2.5% drop erased gains from earlier in the week and brought the cryptocurrency back below the $64,000 mark. Trading volume was elevated at $22.84 billion, suggesting active selling pressure rather than a quiet drift lower.
Why AI spending fears matter for crypto
The connection between AI spending concerns and Bitcoin might not be obvious at first, but the logic runs through risk appetite. When investors worry that tech giants are burning cash on AI without clear payoffs, they tend to reduce exposure to speculative assets across the board. Bitcoin, despite its growing institutional adoption, still trades as a risk-on asset in the short term. The Nasdaq-100's slide this week signals that the macro mood has soured, and crypto is feeling the chill.
The timing isn't great for Bitcoin bulls. The cryptocurrency had been trying to build momentum after a choppy June, but the tech selloff is adding fresh headwinds. With the Nasdaq-100 at an 11-week low and no immediate catalyst to reverse sentiment, the path of least resistance for Bitcoin may remain lower in the near term.
