Bitcoin Retreats From $85K as Tesla and Meta Fail to Ease AI Fears

Bitcoin briefly broke above $84,000 late Wednesday before retreating to the $82,500 support level that analysts are monitoring, as falling technology futures weighed on market sentiment.

BTC traded nearly unchanged at just below $82,800 during Thursday’s Asian morning session after surrendering its late-Wednesday rally toward $85,000. Mixed earnings from Tesla and Meta pushed Nasdaq futures lower and reignited concerns about the sustainability of the artificial intelligence trade.

Among major cryptocurrencies, ZEC was the strongest performer, gaining nearly 3% to around $1,290, while XRP advanced less than 1%. HYPE posted the biggest decline, dropping 3% to approximately $79. DOGE fell 2%, SOL slipped around 1%, and ether, BNB, and TRX each lost less than 1%, according to CoinDesk data.

Bitcoin’s breakout above $84,000 proved short-lived. The level had previously rejected the cryptocurrency’s advance on Oct. 13 and 14, but BTC managed to surpass it late Wednesday and reach a peak near $84,800. Over the following six hours, the price plunged by more than $2,000 to approximately $82,600, catching traders who had entered positions during the rally off guard.

Bitcoin is now hovering near $82,500, a support zone that some market observers consider crucial. A decisive breakdown below this level could expose BTC to a deeper correction toward $70,000.

Big Tech Earnings Weigh on Market Sentiment

Corporate results offered little reassurance to investors. Tesla shares fell 3% in after-hours trading after the company lowered its capital expenditure forecast. Lam Research, a manufacturer of semiconductor equipment, dropped 7% following a disappointing outlook.

Meta shares climbed 2% after the company increased its planned AI spending, but the gains failed to offset broader concerns about the sector. Nasdaq 100 futures declined 1.1%, while S&P 500 futures fell 0.5%.

Asian Markets Extend the Decline

Technology stocks also weakened across Asia. South Korea’s Kospi dropped 2.2% as Samsung Electronics and SK Hynix shares retreated. China’s CSI 300 fell 1.7%, bringing the index closer to bear-market territory.

Chinese e-commerce shares also came under pressure, with Alibaba leading the sector lower after authorities called for stricter quality controls.

Meanwhile, crude oil prices rose as tensions in the Middle East flared again, adding another source of uncertainty for global markets.