Bitcoin Holds Near $64K as Oil Rises, Kimi AI Selloff Weighs

Bitcoin is holding steady near the $64,000 mark on Monday, failing to gain traction as oil prices surged to a one-month high and a lingering selloff in Kimi AI-related stocks kept traders cautious.

The world's largest cryptocurrency was trading at $63,980 at press time, virtually unchanged from the same time a day earlier. Trading volumes have been thin, with little catalyst to push the price in either direction.

Oil at One-Month High Spooks Risk Assets

Brent crude oil futures rose past $87 a barrel on Monday, their highest level in over a month. The rally in oil is being driven by supply disruptions in the Middle East and stronger-than-expected demand from China.

Rising oil prices typically act as a headwind for risk assets like cryptocurrencies. Higher energy costs can fuel inflation concerns, which in turn could delay or reduce the pace of interest rate cuts by central banks.

Traders are now watching for further moves in oil markets. A sustained rally above $90 could trigger a broader selloff across crypto and equities alike.

Kimi AI Selloff Casts a Shadow

Adding to the cautious mood is the continued selloff in stocks linked to Kimi AI, the Chinese artificial intelligence startup. Shares of companies associated with Kimi have been sliding for a second week after reports of regulatory scrutiny and a slowdown in user growth.

Kimi AI had been a poster child for the AI boom earlier this year, driving a wave of speculative interest in related tokens and stocks. The current rout has wiped out billions in market value and is spilling over into the crypto market.

Traders say the Kimi selloff is hurting sentiment around AI-themed cryptocurrencies and broader risk appetite. Some are worried that a deeper correction in AI stocks could trigger margin calls and forced selling in other assets.

Bitcoin Stuck in a Tight Range

Bitcoin has been trading in a narrow band between $63,000 and $65,000 for the past week. The lack of volatility is unusual for a market that has seen wild swings in recent months.

Technical analysts point to the $60,000 level as key support. A break below that could open the door to a drop toward $55,000. On the upside, a move above $66,000 would signal a resumption of the uptrend.

Market participants are now waiting for the Federal Reserve's next policy meeting for clues on interest rates. A dovish stance could reignite demand for risk assets, including Bitcoin.

For now, traders are playing a waiting game. The confluence of rising oil prices and a tech selloff is keeping Bitcoin pinned near $64,000, with no clear catalyst to break the stalemate.

What to watch next: The release of US consumer confidence data later this week and any fresh headlines on Kimi AI's regulatory status could provide the next move for Bitcoin.