Bitcoin's price dropped to around $64,017 on July 25, slipping 2.49% as a sell-off in tech stocks spurred profit-taking among investors. The cryptocurrency is currently testing a key four-hour ascending trendline, which if breached could expose the $60,000 psychological support level.
The catalyst behind this dip was the Nasdaq-100 index tumbling to its lowest point since early May, driven by concerns over hefty AI-related investments by major tech companies. The Nasdaq closed at 28,128 points, an 11-week low, as investors worried about the impact of those capital expenditures on near-term corporate profits and debt levels.
Peter Andersen, CEO of Andersen Capital Management, remarked on the situation: “People are thinking, how do we make sense of all this spending, and how much more patient do we have to be before we actually see it translate to actual profits?” This cautious stance in traditional markets has spilled over into crypto, prompting traders to take profits instead of chasing higher risk.
Supporting this view, spot Bitcoin ETFs experienced their weakest inflows in three weeks, with only $33 million entering during the week ending July 24. Meanwhile, the US 10-year Treasury yield climbed to 4.71%, its highest since January 2025, making bonds more attractive compared to the volatility of cryptocurrencies.
Bitcoin’s daily trading volume rose to nearly $23 billion as selling pressure intensified following its recent high near $66,900 earlier this month. The growing correlation between Bitcoin and tech stocks adds an extra layer of sensitivity to market shocks linked to tech sector behavior.
