Bitcoin Analysis: BTC Is Falling on Doubts About AI Spending. Is It Trading Like a Tech Stock Now?

Bitcoin just dropped below $80,000 on the same day AI stocks tanked, and the timing may not be a coincidence. Whether this signals a lasting shift in how the world's top cryptocurrency trades could change everything about how investors need…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Bitcoin (CRYPTO:BTC) fell below $80,000 today, driven by investor anxiety about AI spending. The top cryptocurrency slipped as much as 1.4%, hitting under $79,300, and was trading at $79,859 in early New York hours, close to its 30-day low of $79,107. So far in October, Bitcoin has dropped 4.1%.

While a 1.4% decline is minor compared to Bitcoin’s typical volatility, it coincided with a significant selloff in AI and tech stocks. So, is Bitcoin now behaving like a tech stock?

AI Spending Fears Hit Tech Stocks, and Bitcoin Follows Suit

The downturn began on Wall Street. On October 22, the Nasdaq Composite fell 2.6%, and the S&P 500 fell 1.2%—its worst performance since July. Investors grew concerned that rising borrowing costs for data centers and AI chips could hinder the AI sector’s growth. The CBOE Volatility Index (VIX), which gauges expected market fluctuations using S&P 500 options, increased from 14.8 on October 9 to 19.0 by October 22.