Bitcoin's rally toward $85,000 was short-lived after gains went into reverse on Thursday, tracking stock futures lower after worries around the artificial intelligence trade resurfaced.
The flagship cryptocurrency was 2.2% lower at $82,799, after reaching as high as $84,835 in the previous session. Its rally ran out of steam in early Asia trade, falling around $2,000 in just over six hours.
Nasdaq futures pointed 1.5% lower after investor concerns over the sustainability of the artificial intelligence boom continued to subdue risk appetite. In a week lacking any major economic data releases, bitcoin looks to be taking some of its cues from the stock market, with third-quarter earnings from tech hyperscalers proving a focal point.
Despite the flushout, bitcoin has held above $82,500 for the past 24 hours, according to data from LSEG. That price has emerged as the most important support level in the current market structure, according to Simon-Peter Massabni, head of retail sales at multi-asset broker XS.com.
He added that trading near support doesn't necessarily indicate that bullish momentum has been restored, as weak spot trading volumes continue to create vulnerability to sudden swings. J.P. Morgan estimated $23 million of inflows into spot bitcoin exchange-traded products on Tuesday.
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