Bitcoin Stagnates at $65K as Investors Flock to AI-Linked Tech Stocks
Bitcoin's price stagnation has been observed at around $65,400 after failing to reach the initial momentum of $66,000. According to analyst Wise Crypto, capital rotation towards technology stocks linked to artificial intelligence is limiting the liquidity available for digital assets.
The spot Bitcoin exchange-traded funds (ETFs) have recorded seven consecutive sessions of net inflows totaling nearly $1 billion, a figure that contrasts with the $6.9 billion in net outflows recorded between May and June. This trend suggests that investors are shifting their capital towards AI-linked technology stocks.
Major tech corporations are allocating between $190 billion and $205 billion to AI infrastructure this year, with Nvidia's data center revenue growing 92% year-over-year and driving a 69% rally in sector stocks. Meanwhile, Bitcoin's price has accumulated an approximate decline of 25% over the same period.
Technical analysis from Michaël van de Poppe suggests that holding the price above the 21-day moving average keeps open the possibility of an advance towards $68,000 and eventually the $73,000 range. However, a report from Bitfinex indicates that the range between $67,900 and $68,300 acts as a liquidation zone for short-term holders.