Bitcoin is trading sharply lower on Tuesday, dipping to $63,500 as a wave of enthusiasm around artificial intelligence draws capital away from crypto, according to CoinDesk live updates. The decline comes as cloud provider CoreWeave surged 9% after reporting its backlog crossed $100 billion, fueled by insatiable demand for AI infrastructure. STS Digital’s Jeff Anderson warned that the looming U.S. inflation report on Wednesday could further pressure risk assets, including Bitcoin.
Bitcoin Loses Ground to AI-Fueled Equities
This rotation mirrors a trend seen earlier this year when Bitcoin’s correlation with tech stocks weakened amid AI breakthroughs. Recent data shows institutional flows pivoting from pure-play Bitcoin exposure to hybrid AI-crypto opportunities, as seen in Bitcoin Flat at $64,300 Before US Jobs Report as Oil Rally Revives Inflation Jitters. The move below the $65,000 support level extends a two-week slide, with the broader crypto market paralleling the pullback. On-chain metrics indicate short-term holders are increasingly moving coins to exchanges, signaling potential further sell pressure.
Live Updates: Bitcoin Steady Above $65,100 as Strategy Reports 1,690 BTC Sale, Senate Punts Crypto Bill highlights the fragile sentiment around Bitcoin after Strategy’s sale earlier this month; while that was company specific, it underscores how corporate treasuries are re-evaluating their holdings given AI’s rise. CoreWeave’s blockbuster numbers reinforce the narrative that AI is the dominant tech investment theme of 2026, leaving crypto in a tough spot.
Inflation Report and Fed Expectations Loom Large
The upcoming CPI data will be critical for Bitcoin’s near-term direction. A hot reading could cement the case for the Federal Reserve to keep rates elevated, dampening appetite for non-yielding assets. Conversely, a cooler print might revive the “digital gold” narrative. Against this mixed backdrop, Coldcard Exploit Could Boost Demand for Regulated Bitcoin Exposure, Analysts Say explores how recent security incidents are pushing institutions toward regulated vehicles, a trend that might provide a floor for Bitcoin even as speculative flows taper off.
