Key Takeaways
- Bitcoin hit $74,762, its lowest since Aug. 21, as a global tech stock sell-off rattled markets.
- Crypto liquidations fell to $707 million, while U.S. money market fund assets reached $8.016 trillion.
- Bitunix warned that AI spending risks and tighter financial conditions could weigh on markets into 2027.
Bitcoin Slides to Lowest Level in Months
Bitcoin briefly dipped below the $75,000 threshold on Friday, caught in the wake of a global equity sell-off that erased trillions in market value from tech giants. Adding to the market turbulence, fresh U.S. economic data revealed an unexpected payroll surge: The economy added 165,000 jobs, smashing consensus estimates of 64,000 and likely complicating expectations for upcoming Federal Reserve rate cuts.
Market data indicates bitcoin established strong support above $75,000 following a 5% drop roughly 24 hours prior. However, the cryptocurrency faced persistent resistance at the $76,000 threshold, with every breakout attempt triggering a quick sell-off. This pattern played out three times, with the initial two pullbacks dragging the price progressively closer to its $75,000 floor.
Shortly after bitcoin surpassed $76,000 for the third time around 8:25 a.m. EST, selling pressure intensified, sending the price to $74,762, its lowest level since Aug. 21. Still, by 11:48 a.m. EST, bitcoin had recovered slightly and was trading under $75,700, leaving it down nearly 1.5% over the previous 24 hours.
Despite the continued weakness, bitcoin’s price action since erasing gains made following the U.S. midterm elections has coincided with a notable decline in liquidations. According to Coinglass data, total bitcoin liquidations stood at $125 million, with long positions accounting for approximately $105 million.
Across the broader cryptocurrency market, total liquidations fell to $470 million, down sharply from more than $1 billion the previous day.
Markets quickly reversed an initial post-election rally following reports that Democratic lawmakers intended to target artificial intelligence (AI) companies, specifically data center operators, over rising voter concerns. The news rattled investors already uneasy about massive AI capital expenditures, triggering a sell-off that reached Asian equity markets by early Friday.
As reported by Bitcoin.com News, South Korea’s benchmark KOSPI index plummeted up to 9%, forcing a temporary circuit-breaker trading halt, while major indices in Japan and Taiwan also logged heavy losses. That followed a massive sell-off in American markets on Thursday, where Magificent 7 stocks collectively lost $1 billion in market value.
Analysts Warn of AI Spending Risks and Tighter Financial Conditions
Meanwhile, analysts at Bitunix warned that U.S. markets face multiple sources of pressure. In a new research note, they said concerns about returns on AI capital expenditures, data center regulation, and the unwinding of highly leveraged positions had converged, triggering sharp declines in technology and semiconductor stocks.
The analysts also highlighted a shift in capital toward short-term U.S. Treasuries and money market funds. Assets held in money market funds reached a record $8.016 trillion, suggesting that investors are increasingly prioritizing liquidity and defensive positioning.
Commenting on the implications of the technology stock sell-off, Bitunix analysts said:
“Notably, the technology sell-off has also reduced market expectations for a Federal Reserve rate hike in December. This suggests that the tightening effect generated by financial markets themselves could reduce the need for further monetary tightening.”
Looking ahead, the analysts argued that the central question is not simply whether inflation remains elevated, but whether rising energy costs translate into broader price pressures and whether a slowdown in AI investment further weighs on corporate financing and employment.
They added that the challenge for global central banks extends beyond controlling inflation to preventing tighter financial conditions and slowing economic growth from reinforcing each other.
