- Bitcoin drops below $82,400 as AI spending fears and Middle East tensions weigh on the market.
- Bitcoin ETFs attract $1.1 billion in inflows amid renewed investor demand.
- Traders remain cautious as oil prices rise, with Bitcoin needing to break above $83K to target $85K.
Bitcoin has fallen below $82,400, surrendering its previous session’s gains as concerns over artificial intelligence spending, rising oil prices, and geopolitical tensions weigh on market sentiment.
According to CoinMarketCap data, Bitcoin reached a daily high of $84,840 before trading below $82,400 at press time. The decline also hit other major cryptocurrencies, with Ethereum, Solana, and XRP down about 2% to 3.5%.
AI Concerns and Middle East Tensions Pressure Bitcoin
Bitcoin fell alongside global stock markets as investors reacted to mixed tech earnings and rising tensions in the Middle East. Brent crude oil rose above $110 per barrel, while Asian stocks and U.S. stock futures declined, adding to concerns about the global economy.
Investors are also worried about the high cost of AI development, putting pressure on technology stocks and reducing hopes for a strong cryptocurrency recovery.
Caroline Mauron, co-founder of Orbit Markets, said falling stock markets had pushed Bitcoin back into its recent trading range.
“We expect $85,000 to be retested again in the coming days, though conviction is likely to stay limited,” Mauron said.
Bitcoin remains well below its all-time high of more than $126,000 it reached a year ago. While its recovery since August had raised expectations of a possible return to $100,000 this year, macroeconomic uncertainty and AI-related concerns have complicated that outlook.
Bitcoin ETFs Record $1.1 Billion in Inflows
Despite the price decline, institutional demand has shown signs of recovering through U.S. spot Bitcoin exchange-traded funds (ETFs). Yesterday, Bitcoin ETFs attracted $528 million in new investment.
The funds have now recorded $1.1 billion in net inflows so far this week. This reverses some of the pressure from the previous two weeks, when they experienced $909.6 million in combined outflows.
The revived inflows suggest that investors are returning to Bitcoin even while market conditions remain uncertain. However, the latest price action indicates that ETF demand has not been enough to prevent a short-term pullback.
Options markets also point to continued caution among traders. Data from Deribit shows that the largest outstanding positions in Bitcoin put options expiring Friday were concentrated at the $78,000 strike price, indicating demand for protection against a further decline toward that level.
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Can Bitcoin Rise Back to $85,000?
Bitcoin’s next move depends on whether it can break above $83,000 and move closer to $85,000. Pratik Kala, a portfolio manager at Apollo Crypto, said Bitcoin had held up well despite economic uncertainty and falling interest in AI-related investments. He expects Bitcoin to rise further.
However, rising oil prices, falling stock markets, and concerns about Federal Reserve policy could limit Bitcoin’s recovery.
In sum, Bitcoin has both positive and negative factors. Money flowing into Bitcoin ETFs and hopes of a recovery could support prices, while economic uncertainty and cautious trading continue to weigh on the market.
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Related: CryptoQuant CEO Says Fresh Bitcoin Inflows Only Happen in Bull Markets
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