Bitcoin Rebounds Near $64,000 as AI Jitters and Bill Uncertainty Linger

Bitcoin Stages Recovery After Sharp Selloff

Bitcoin rebounded toward the $64,000 level on Saturday, clawing back some of the ground lost during a volatile week. The world’s largest cryptocurrency traded near $63,800 in early Asian hours, up roughly 4% from its intraweek low.

The move comes after a brutal selloff triggered by a shock from the artificial intelligence sector. News of a major AI company’s earnings miss and a subsequent tech rout spilled over into crypto markets, dragging Bitcoin below $60,000 for the first time in weeks.

AI Shock Rattles Broader Markets

Investors dumped risk assets earlier this week after a disappointing quarterly report from a leading AI firm. The selloff erased billions from global equity markets and hit cryptocurrencies hard. Bitcoin fell as low as $58,200 before finding support.

Crypto traders often treat Bitcoin as a high-beta technology play, meaning it tends to amplify moves in tech stocks. The correlation with the Nasdaq 100 has strengthened over the past year, leaving Bitcoin vulnerable to sector-specific shocks.

“The AI news spooked everyone,” said a Mumbai-based crypto analyst. “But Bitcoin has a habit of bouncing back quickly when the panic fades.”

Regulatory Clouds Remain Over India

Adding to the uncertainty is the prolonged debate around India’s proposed cryptocurrency bill. The legislation, which aims to regulate digital assets and potentially impose a ban on private cryptocurrencies, has been in limbo for months.

Traders and exchanges have been watching for any signal from the government. Recent parliamentary sessions failed to bring the bill to a vote, keeping the market guessing. Sources suggest the government is weighing stricter compliance rules rather than an outright ban, but no official confirmation has emerged.

The lack of clarity has discouraged some institutional players from entering the Indian crypto space. Volumes on domestic exchanges remain subdued compared to global peers.

Global Sentiment Offers Some Support

On the global front, positive developments have provided a floor under prices. The US Securities and Exchange Commission’s recent approval of spot Bitcoin ETFs continues to draw mainstream interest. Inflows into those funds have slowed but remain positive.

Macroeconomic factors also play a role. Expectations that the Federal Reserve may cut interest rates later this year have buoyed risk assets. Lower rates tend to weaken the dollar and make speculative investments like crypto more attractive.

“Bitcoin is caught between macro tailwinds and regulatory headwinds,” said a Singapore-based fund manager. “The near-term path depends on which force wins out.”

What to Watch Next

All eyes are on the $64,000 resistance level. A decisive break above that could open the door to a retest of $67,000. On the downside, $60,000 remains the key support to defend.

The next major catalyst will be the outcome of India’s monsoon parliamentary session, where the crypto bill could resurface. For now, traders are bracing for more volatility as the AI story and regulatory drama continue to unfold.