Nasdaq-100 Plunge Hits Bitcoin Price Amid AI Spending Fears

Investors are worried about tech companies' heavy spending on AI, which is leaving them with reduced cash flows and mounting debts. This has led to a drop in the Nasdaq-100 index to its lowest point since May 5. The index closed at 28,128 points on July 24, and Bitcoin's price has followed suit.

Bitcoin's price is down by 2.49% today, July 25, to trade at $63,956 with $22.84 billion in volumes per CoinMarketCap data. The CEO of Andersen Capital Management, Peter Andersen, notes that investors are concerned about whether these investments will bear returns and the effect it will have on the value of their shares.

The price of Bitcoin is facing resistance at the 200-week EMA of $68,284. BTC has not traded above this EMA since June 1. The volume histogram bars that have turned red suggest that selling pressure is rising again, which could hinder a move above the 200-week EMA.

Data from SoSoValue shows that BTC ETFs had $33 million in inflows in the week between July 20 and July 24, marking the least inflows the ETFs have seen in three weeks. This follows a recent rise in US Treasury yield to 4.71%, causing investors to turn away from risk assets like Bitcoin.