Bitcoin dropped 2.49% on July 25 to $63,956 as the Nasdaq-100 fell to an 11-week low on fears over heavy AI spending. The token, which often trades like a tech stock, is held below its 200-week moving average while ETF demand cools and Treasury yields climb.
Bitcoin fell 2.49% on July 25 to $63,956, tracking a slide across tech stocks as the Nasdaq-100 dropped to its lowest point since May 5. Turnover reached $22.84 billion over the session, per CoinMarketCap.
Nasdaq-100 slide pulls Bitcoin down
The Nasdaq-100 closed at 28,128 points on July 24, its weakest level in 11 weeks. The retreat follows worry that tech giants are spending heavily on AI, leaving them with thinner cash flows and rising debt — CoinGape reported that Alphabet bought $94 billion worth of SpaceX stock during the June IPO.
Andersen Capital Management CEO Peter Andersen noted to Reuters that investors worry whether the investments will bear returns and how that affects the value of their shares: “how do we make sense of all this spending”. Because Bitcoin often trades like a tech stock, it is falling alongside the index.
Bitcoin meets resistance at the 200-week EMA
Bitcoin is facing resistance at its 200-week exponential moving average. The gauge sits at $68,284, a level BTC has not traded above since June 1. Red bars on the volume histogram point to renewed selling pressure, which likely reflects traders taking profits after BTC touched $66,900 on July 21.
Momentum still favors sellers, according to the relative strength index. That reading sits at 39, though the line has carved a higher low. If BTC cannot reclaim the moving average and selling stays heavier than buying, it could slide to psychological support at $60,000.
ETF inflows shrink as Treasury yields climb
Institutional appetite is fading too. Spot BTC ETFs drew $33 million between July 20 and July 24, their weakest inflows in three weeks.
The pullback tracks a rise in the US Treasury yield to 4.71%, the highest since January 2025. As yields climb, investors rotate out of risk assets like Bitcoin and toward government bonds that pay more for less risk.
Source: CoinGape
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