Bitcoin (BTC) is currently trapped near the $76,000 threshold, showing a clear downward trend with no defined direction, according to Woofun AI. This weakness is not an isolated phenomenon but a direct reflection of the gloomy sentiment across global risk assets.
Although international oil prices tumbled sharply on expectations of a potential peace agreement between the United States and Iran, which theoretically should ease inflation pressure and benefit equities, the market did not rebound as anticipated. Instead, as investors grew deeply skeptical about the high return on investment in the artificial intelligence sector, US tech stocks continued to weaken, transmitting negative sentiment to the digital asset market and leaving BTC without effective support.
Looking at concrete trading data, selling pressure was pronounced. As of 8:13 a.m. on the 3rd, BTC was trading at 136.6 million Korean won on the South Korean digital asset platform Upbit, down 1.13% from 9 a.m. the previous trading day. On Binance, the world's leading exchange, BTC fell 1.70% from 24 hours earlier to $76,818. Other major tokens also came under pressure, with Ethereum (ETH) dropping 0.80% to $2,254 and Ripple (XRP) slipping 0.10% to $1.25.
Woofun AI on-chain data showed that total liquidations in the cryptocurrency market over the past 24 hours reached as high as $389.67 million, of which BTC position liquidations accounted for about $97.6 million. Notably, long positions made up 68.5% of those BTC liquidations, or $66.71 million, indicating that leveraged bulls were hit hard by the price decline. This capital drain further deepened the market's pessimistic expectations.
Macro-level turbulence was the core driver of this correction. Over the past three trading sessions, the US semiconductor-related index fell 12% cumulatively, the Nasdaq 100 retreated 10% from its peak and formally entered technical correction territory, and the S&P 500 also dropped 0.5%. Meanwhile, Brent crude oil plunged more than 8% and is now holding slightly above $104 per barrel.
Dave Mazza, CEO of Roundhill Financial, pointed out that although falling oil prices are usually seen as a positive for tech stocks, equities still could not sustain early gains even as oil prices kept declining, a development that profoundly reflects a sharp erosion of investor confidence.
The deeper concern lies in how the massive financing needs of tech giants are adding to the burden of AI investment: Oracle (ORCL.US) plans to issue $10 billion in bonds and an equal amount of stock, Meta (META.US) is considering issuing at least $20 billion in bonds, and Microsoft (MSFT.US) just completed a $25 billion bond issuance last week. These huge financing activities have intensified market doubts about capital expenditure efficiency.
Despite the weak short-term trend, some structural factors may lay the groundwork for a subsequent rebound. After Binance suffered a hacker attack, a large number of investors moved BTC from exchanges to self-custodied cold wallets, reducing the liquidity available for immediate sale in the market. Chris Sullivan, founder and CEO of Hyperion Desimals, revealed that the Chicago Mercantile Exchange (CME.US) holds sell orders equivalent to 29,220 BTC, worth about $2.2 billion at current prices. Such an enormous short position means that once prices recover, it could trigger investors to close their positions by buying, setting off a "short squeeze" and pushing prices higher. Sullivan stressed that the large outflow of BTC from exchanges is a positive signal, even if it will not be immediately reflected in prices.
In addition, the results of the US midterm elections held on the 3rd could bring short-term volatility; if Democrats control both the Senate and the House, legislative progress such as the CLARITY Act could be hindered. However, Mark Konas, chief investment officer at Risk Dimensions, believes more attention should be paid to the financial industry's infrastructure building in digital assets, such as 24-hour trading systems and stablecoin payment networks. He remains bullish on BTC's long-term prospects, expecting the price to reach $180,000 in 2027 and potentially hit $500,000 by 2030.
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