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\n\t\t\t\t\t\t\t\t\tHigher Treasury yields and a stronger dollar continue to weigh on BTC as investors favor income-producing assets.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin is stuck near $65,000, and trader Wise Crypto thinks AI spending is a big part of why.<\/p>\n
The OG crypto poked above $66,000 earlier this week before losing steam, and the pattern points to money chasing AI stocks instead of crypto while inflation and bond yields keep pressure on risk assets.<\/p>\n
Wise Crypto laid out the case on X Thursday, noting<\/a> that while spot Bitcoin ETFs have had seven consecutive days of inflows that have raked in just under $1 billion, the number was a small one next to the $6.9 billion that left those same funds in May and June.<\/p>\n Meanwhile, Big Tech is spending somewhere between $190 billion and $205 billion on AI infrastructure this year, with Nvidia\u2019s data center revenue up 92% year over year, and AI-linked stocks have climbed roughly 69% since January. Bitcoin, over that same stretch, is down about 25%.<\/p>\n \u201cCapital is flowing to AI, not crypto,\u201d Wise Crypto wrote, pointing to two-year Treasury yields near 4.3% and ten-year yields near 4.6% as the forces keeping the dollar strong and investors cautious on risk assets.<\/p>\n The price data backs up the stall, as BTC was trading around $65,400 at the time of writing, down 0.6% on the day, after swinging between about $65,300 and $66,300 in the last 24 hours and between $62,500 and $66,900 over the past week. It is still up close to 5% across 30 days but sits roughly 45% below its all-time-high near $126,000 from last October.<\/p>\n \u201cBTC needs lower inflation, falling yields & stronger demand to break $60K-$70K range,\u201d claimed Wise Crypto.<\/p>\n<\/blockquote>\n Another market watcher, Ted Pillows, writing in his Thursday market report, pointed<\/a> to Brent crude being near $94 a barrel after another round of US-Iran strikes, along with a ten-year TIPS real yield of about 2.31%, a post-pandemic high, as the direct drag on non-yielding assets like Bitcoin right now.<\/p>\n \u201cI\u2019d rather watch $64,000 get defended than chase a run back toward $66,500,\u201d he said.<\/p>\n<\/blockquote>\n Micha\u00ebl van de Poppe has said Bitcoin has already reached its target area, and that holding above the 21-day moving average keeps the door open for near-term gains, with $68,000 marking the next resistance zone and a break above it potentially opening a run to $73,000.<\/p>\n Fellow analyst Axel Adler noted that ETFs have taken in $439 million so far this week, while the so-called Coinbase discount, running for 78 days now, has started to narrow.<\/p>\n Further out, EGRAG CRYPTO flagged<\/a> a developing double bottom pattern that would need a weekly close above $83,000 to gain traction, with $173,000 the eventual target if the setup plays out, though a weekly close below roughly $51,000 would invalidate it.<\/p>\n A similar reaction zone between $67,900 and $68,300 was pointed to by Bitfinex analysts, who also noted<\/a> that short-term holders who bought in that range tend to sell once they recover their original positions, a pattern that has capped rallies before and could do so again if $68,000 comes back into play.<\/p>\n\n
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The Technical Levels Traders Are Watching<\/h2>\n
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