Bitcoin Price Drops to $106.8K Amid AI Capex Fear and Trade Risk
Bitcoin price tumbled to $106,800, mirroring modest declines in the S&P 500 and Nasdaq despite strong Q3 earnings from major tech firms. Investors are wary of escalating AI capital expenditure after Meta raised its AI budget to $70–72 billion and Alphabet forecast up to $93 billion in infrastructure spending. Meta and Microsoft shares slid 10% and 3% respectively, weighing on risk sentiment.
Weak U.S.–China trade talks added pressure. Aside from a delay in rare earth export curbs, President Trump’s meeting with Xi Jinping yielded no breakthroughs, keeping trade tensions alive.
Hyblock’s liquidation heatmaps highlight key Bitcoin liquidation clusters at $103,800, with further long‐position liquidations around $100,500 and $98,600. Traders’ earlier bullish bets on a U.S.–China deal, a Fed rate cut and an end to quantitative tightening have yet to materialize.
Bitcoin price faces a likely retest of the $103,800 support level and potential slide below $100,000. Continued tech-sector jitters, trade risks and mounting liquidation levels point to ongoing bearish pressure.
Bearish
The report outlines multiple headwinds for Bitcoin price. Heavy AI capital expenditure forecasts by major tech firms and a 10% drop in Meta shares have dampened risk appetite. Continued U.S.–China trade uncertainty, with no breakthroughs in recent talks, adds to market fear. Key support levels at $103,800, $100,500 and $98,600 are under threat as liquidation heatmaps show clustered long‐position exits. In the short term, this combination fosters bearish momentum and heightens the risk of a slide below $100,000. Over the longer term, any positive shift in trade negotiations or a clear Fed stance on rate cuts and quantitative tightening could stabilize prices, but current indicators point to continued downward pressure.