Bitcoin drops toward $65,000 as crypto liquidations surpass $1.35 billion amid AI trade rotation
By
Yaël Bizouati-Kennedy
4h ago· 8 min readenNews
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Summary
Bitcoin is experiencing a significant downturn, dropping toward $65,000 — a level not seen since early March — amid multiple headwinds including a lack of catalysts, risk appetite rotating into AI investments, and over $1.35 billion in crypto liquidations in 24 hours. The Fear and Greed Index sits at 26 (fear), and analysts suggest the AI trade is diverting capital away from crypto, potentially forcing the market through a painful transition period.
Key quotes
· 3 pulledIt's a cruel summer for bitcoin, as it seemingly heads toward February's $60,000 lows.
The AI trade is sucking all the oxygen out of the room.
Crypto may be forced to go through a painful metamorphosis.
The AI trade is “sucking all the oxygen out of the room,” one analyst wrote.