Bitcoin holds near $65,000 after early gains fade; AI stocks slide

Bitcoin gave up its early gains on Monday and was trading near the $65,000 mark, as a broad sell-off in artificial intelligence stocks dampened risk appetite across markets. The world's largest cryptocurrency had briefly climbed higher in the morning session but could not sustain the momentum.

According to data tracked by CoinDesk, Bitcoin was hovering around $65,000 in late afternoon trading. The retreat erased the optimism from an earlier push that had taken prices above the day's opening levels.

AI stocks drag on sentiment

The pullback in crypto coincided with a sharp decline in shares of companies tied to artificial intelligence. Several major AI-linked stocks fell during the trading day, weighing on the Nasdaq and broader equity indices. Traders said the correlation between high-beta assets like Bitcoin and tech stocks appeared to be reasserting itself.

“When AI names get hit, crypto often feels the ripple,” one market participant said. “It’s a reminder that even though Bitcoin is seen as a hedge by some, in the short term it still trades like a risk asset.”

The slide in AI stocks was not linked to any single company-specific news. Analysts suggested profit-taking after a recent rally in the sector and jitters about upcoming earnings reports were among the triggers.

Bitcoin holds key level

Despite the pullback, Bitcoin managed to hold above the psychologically important $65,000 level. Traders said this could provide a floor for prices in the near term, though they cautioned that a break below could trigger further selling.

Volume on major exchanges was elevated compared to the previous session, indicating active repositioning by both retail and institutional participants. Open interest in Bitcoin futures also remained high, suggesting that leveraged positions were being unwound cautiously.

Some analysts pointed to the resilience of Bitcoin’s price as a positive sign. “The fact that it’s not collapsing below $65,000 shows there is still demand at these levels,” a crypto fund manager said. “But the lack of momentum to push higher is concerning.”

Broader market context

The crypto market as a whole mirrored Bitcoin’s performance. Ethereum was trading slightly lower, while smaller altcoins saw mixed moves. The total market capitalisation of all cryptocurrencies slipped by about 1.5% during the day.

Meanwhile, traditional safe-haven assets like gold remained flat, indicating that the sell-off was largely contained to riskier corners of the market. The US dollar index edged up modestly, adding some pressure on crypto prices.

Regulatory news was sparse on Monday, leaving traders to focus on macro cues. The upcoming Federal Reserve meeting and inflation data later this week are expected to set the tone for risk assets, including crypto.

What to watch

All eyes will be on Bitcoin’s ability to defend the $65,000 support level in the coming sessions. A close below that mark could open the door to a retest of lower levels. On the upside, a renewed rally in AI stocks or positive macro data might provide the catalyst needed to push Bitcoin back toward recent highs.