Bitcoin hovers near lows after sharp drop as chip rebound steadies stocks

What moved the tape

Thursday's selloff knocked Bitcoin from above $80,000 and left it treading water near recent lows on Friday. The largest crypto was little changed around $75,600, while BNB, Ether and Solana were mostly flat.

Cryptos fell with other risk assets following underwhelming reports from semiconductor companies and Democrats winning control of Congress. At the same time, a selloff in artificial intelligence shares has bled into crypto, a linkage that has grown as many mining firms shifted into AI in recent years. The backdrop was already fragile after a $6.3 billion breach at Binance Holdings Ltd. on Oct. 29.

Stocks steadied, but macro watch continues

A rebound in chipmakers helped lift equities on Friday as dip buyers stepped in. Meanwhile, fresh economic readings reinforced speculation the Federal Reserve will raise rates in December.

"Bitcoin appears to be finding some relief after yesterday's sharp selloff, although I would be cautious about calling this a reversal just yet," said Dean Chen, an analyst at Bitunix. "I would describe the current move as selling pressure easing, rather than fresh accumulation taking hold."

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Flows, positioning, and the key levels

Spot Bitcoin ETFs in the US posted $430 million of outflows on Thursday, according to Bloomberg-compiled data. Fidelity's Wise Origin Bitcoin Fund accounted for about $200 million of that, with BlackRock's IBIT near $105 million.

"The selloff reflects growing doubts over the returns from huge AI spending, fears that tighter regulation could slow data-center construction and a broader retreat from highly valued growth assets," said IG's chief technical analyst, Axel Rudolph. He added that with stocks still sliding, Bitcoin holding its levels suggests buyers are defending them, which could test whether the token is starting to move differently from the technology trade.

Why it matters for your portfolio

In plain English: crypto is taking its cues from the same forces hitting growth trades. Watch chipmakers, AI sentiment, ETF flows and that $77,000 line for signs of momentum returning. If equities weaken again, Leyne's $75,000 scenario is in focus.

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