From Coinpedia · By Zafar Naik
Bitcoin and US stocks declined last week as concerns over AI investments, rising interest rate expectations and market uncertainty affected investor sentiment. US stocks lost nearly $3 trillion in market value in a single trading session, while BTC price fell below $75,000 and briefly touched the $73,000 level.
Advertisement The S&P 500 declined 2.7% for the week, while the Nasdaq fell 3.4%. Bitcoin ETFs recorded $1.28 billion in weekly outflows, while Ethereum ETFs saw approximately $365 million withdrawn.
The decline has raised concerns about whether the sell-off will continue this week. Investors are now watching US inflation data, Federal Reserve rate expectations and Nvidia’s upcoming earnings for further market direction.
Why Are US Stocks Falling?
Three factors contributed to last week’s decline in US stocks.
AI Data Centre Concerns
Investors are concerned that potential restrictions on AI data centre expansion could affect demand for chips and other technology infrastructure.
US election campaigns brought more attention to data centre construction, with candidates from both major parties raising concerns about its expansion.
These concerns affected semiconductor stocks. Micron fell 22%, Palantir declined 13%, while Oracle and AMD dropped around 11%. Nvidia also lost approximately 9%.
Higher Interest Rate Expectations
US employment data showed 165,000 new jobs in October, compared with expectations of 65,000.
The stronger jobs report increased concerns that the Federal Reserve could keep interest rates higher or consider another rate hike in December.
Higher interest rates can put pressure on technology stocks and other risk-sensitive investments.
Uncertainty Over AI Spending
Technology companies are investing billions of dollars in AI infrastructure, but investors remain uncertain about how quickly these investments will generate returns.
Concerns over borrowing costs and future profitability have increased selling pressure on AI-related stocks.
Why Is Bitcoin Falling Below $75,000?
Bitcoin price is facing pressure from the broader market decline and continued withdrawals from crypto investment funds. Bitcoin ETFs recorded $1.28 billion in weekly outflows, their largest weekly withdrawal since June. More than $840 million left these funds on Thursday and Friday.
Ethereum ETFs also recorded approximately $365 million in outflows, marking their sixth consecutive week of withdrawals.
Bitcoin traded above $80,000 on Wednesday before falling towards $76,000 and briefly touching the $73,000 area. The decline also affected market sentiment, with the Crypto Fear and Greed Index falling to 29.