Bitcoin moved lower alongside U.S. equities on Thursday as investor anxiety over aggressive AI spending by major tech companies triggered a broader market selloff. The cryptocurrency briefly fell below $107,000, reflecting a wider shift toward risk aversion after fresh earnings disclosures highlighted the enormous scale of capital being poured into artificial intelligence.
Massive AI spending unsettles Wall Street
Recent company updates showed that Alphabet plans to spend about $93 billion in 2025 on AI, while Meta is expected to allocate roughly $72 billion. Microsoft, meanwhile, has already spent $35 billion in a single quarter on the technology. Those figures intensified concerns that AI investment may be running ahead of realistic returns, weighing on sentiment across the stock market.
The Nasdaq fell nearly 300 points on Thursday, while the S&P 500 dropped 44 points and the Dow was mostly unchanged. Among the major names, Meta declined 11.63%, Microsoft slipped 3.42%, and Alphabet stood out with a 3.21% gain as analysts viewed its AI search strategy more as an opportunity than a threat.
Bitcoin tracks broader risk sentiment
Against that backdrop, Bitcoin fell 3.49% over 24 hours to $107,023.50, extending its weekly loss to 3.16%. Over the same period, BTC traded between a high of $111,822.90 and a low of $106,668.08. The move suggested that expectations for stabilization following a recent rate cut and a successful U.S.-China trade meeting were overshadowed by fears tied to a possible AI bubble.
Spot market activity was relatively stable despite the decline. Trading volume held near $68.11 billion, while Bitcoin’s market capitalization slipped to $2.12 trillion. One relative bright spot was BTC dominance, which rose 0.73% to 59.99%, indicating that Bitcoin was still outperforming many altcoins during the pullback.
Liquidations rise as longs take the hit
Derivative markets also showed pressure building. According to Coinglass, Bitcoin futures open interest dropped 1.77% to $72.43 billion. Total liquidations over 24 hours reached $391.82 million, nearly doubling from the previous period. Long positions accounted for the bulk of that figure, with losses of $360.90 million, while short liquidations totaled $30.92 million.
With estimates putting annual AI spending near $1.5 trillion, investors are increasingly focused on whether the current investment wave can deliver sustainable returns. For now, Bitcoin appears to remain closely tied to broader risk sentiment, leaving the asset vulnerable if concerns over an AI-driven market bubble continue to spread.