Bitcoin remains range-bound near $65,000 as rising Treasury yields, a stronger dollar, and massive capital flows into artificial intelligence stocks divert investor attention from risk assets. Analysts note that while spot Bitcoin ETFs saw nearly $1 billion in inflows over seven consecutive days, this was dwarfed by the $6.9 billion that exited those funds in May and June. Big Tech is spending between $190 billion and $205 billion on AI infrastructure this year, with AI-linked stocks climbing roughly 69% since January, while Bitcoin is down about 25% over the same period. Two-year Treasury yields near 4.3% and ten-year yields near 4.6% are keeping the dollar strong and investors cautious. Trader Wise Crypto stated that capital is flowing to AI, not crypto, adding: “BTC needs lower inflation, falling yields & stronger demand to break $60K-$70K range.”
Bitcoin is stuck near $65,000, and trader Wise Crypto believes AI spending is a major reason why. The OG crypto poked above $66,000 earlier this week before losing steam, with the pattern pointing to money chasing AI stocks instead.
Wise Crypto laid out the case on X, as stated that while spot Bitcoin ETFs have had seven consecutive days of inflows totaling just under $1 billion, this figure was small next to the $6.9 billion that left those same funds in May and June. Big Tech is spending between $190 billion and $205 billion on AI infrastructure this year, with Nvidia’s data center revenue up 92% year over year.
“Capital is flowing to AI, not crypto,” Wise Crypto wrote, pointing to two-year Treasury yields near 4.3% and ten-year yields near 4.6% as forces keeping the dollar strong. The price data backs up the stall, as BTC was trading around $65,400 at the time of writing, down 0.6% on the day.
BTC is up close to 5% across 30 days but sits roughly 45% below its all-time-high near $126,000 from last October. “BTC needs lower inflation, falling yields & stronger demand to break $60K-$70K range,” claimed Wise Crypto.
Another market watcher, Ted Pillows, as noted in his market report, pointed to Brent crude being near $94 a barrel after another round of US-Iran strikes, along with a ten-year TIPS real yield of about 2.31%. “I’d rather watch $64,000 get defended than chase a run back toward $66,500,” he said.
Michaël van de Poppe has stated that Bitcoin has reached its target area, with holding above the 21-day moving average keeping the door open for near-term gains. Bitfinex analysts noted a reaction zone between $67,900 and $68,300, where short-term holders who bought in that range tend to sell once they recover their positions.
