Bitcoin drops to $107K as big tech stocks fall on AI concerns

Important points 

• Bitcoin charts point to a downside as low as $103,800, and an eventual flush of below $100,000 in the near term. 

• Investors believe that CAPEX investments by Big Tech firms for their AI-based infrastructure reflect a market driven by speculation.    

Bitcoin’s (BTCThe end-of month sell-off intensified as the price fell to $107,328 just after Thursday’s New York opening and then dropped further into the intraday range of $106,800. The move mirrors a slight weakness in US stock markets, where the S&P 500 and Nasdaq showed slight losses despite third-quarter earnings from Big Tech companies surpassing expectations. 

Meta, one of the seven Magnificent Seven companies, and Microsoft both saw their stock prices drop 10% and 3 % respectively. Investors’ doubts about Big Tech spending on AI overshadowed recent positive earnings reports. Meta boosted its capital expenditure on AI to the $70 billion–$72 billion range, while Alphabet has forecast up to $93 billion in CAPEX dedicated to the AI buildout. 

The market does not seem to buy into the US President Donald Trump’s description of their trade agreement meeting. The US and China trade war is still a risky event to investors, despite the fact that the tariffs on fentanyl have been reduced and China has agreed to postpone its export ban for rare earths by a year. 

Related: Bitcoin risks ‘20%-30%’ drop as crypto markets liquidate $1.1B in 24 hours.

Bitcoin’s poor performance in terms of price is a surprising outcome for those who expected a surge to the highs of range if Trump and China reached a trade agreement. Federal Reserve 25 basis point cut By the end October, the interest rate hikes and end to the quantitative tightening were confirmed. 

Hyblock’s data shows the highest immediate liquidity of $103,800. 

Looking back one month, and including positions held longer, long-term liquidity is between $98,600 and $100,500. 

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.