Bitcoin (BTC) traded below $82,000 on Friday as stock markets declined amid concerns about artificial intelligence sector financing and profitability.
The largest cryptocurrency shed 3.2% on Thursday, briefly falling as low as $80,840 on the Bitstamp exchange before consolidating in a range between $80,000 and $87,000.
AI Infrastructure Concerns Drive Broader Market Weakness
Market participants expressed concern over profitability in the AI sector and costs associated with insuring large technology firms against default. CoreWeave, a neocloud infrastructure provider, declined 15.5% during the week and hit 17-month lows following a price target downgrade by Bernstein from $74 to $51.
The weakness extended beyond cryptocurrency into equities markets. South Korea's KOSPI Composite Index opened at 5,402 points on Friday before dropping to 5,305 points, marking its lowest level since late July. The index finished the session 0.3% higher.
Nvidia CEO Jensen Huang said on Thursday that a "scarcity of capital" was impacting neocloud buildouts, noting that demand for capital far exceeds availability.
Capital Flows and Liquidations
US spot Bitcoin exchange-traded funds saw net outflows of $635 million on Thursday, representing the largest single-day drawdown since late June.
Traders experienced significant liquidations as Bitcoin moved toward the lower boundary of its trading range. Cross-crypto liquidations totaled $336 million over 24 hours, including $281 million in long positions.
