Bitcoin drops below $70K as AI equities drain liquidity
In brief
- Bitcoin slipped below $70,000 for the first time in two months, down 4.45% in 24 hours.
- Spot bitcoin ETF recorded its 11th consecutive day of net outflows.
- Researcher Pierre Rochard attributes the decline to AI equities draining liquidity, not Strategy's 32 BTC sale.
- Crypto markets face headwinds from upcoming U.S. jobs data and rate-cut sentiment.
Spot ETF Outflows Continue
Bitcoin was recently trading near $69,400, with spot bitcoin ETF suffering an 11th straight day of net outflows. Ether fared slightly better, but dropped 0.6% to $1,970. The broader CoinDesk 20 index retreated 3.2% in the same period, signaling weakness across the sector.
The AI Liquidity Drain
Strategy's bitcoin sale grabbed headlines, but bitcoin researcher Pierre Rochard argues the narrative misses the bigger picture. The real pressure comes from elsewhere.
"Saylor / Strategy selling a few raspberries isn't causing bitcoin to crash. The reality is that there is a massive parabolic spike in AI-related equities that is vacuuming up all excess liquidity, multiples of bitcoin's market cap." — Pierre Rochard, bitcoin researcher and board member at Strive
This framing reframes the selloff as a liquidity event tied to equities markets rather than any fundamental weakness in crypto itself. Cryptocurrency markets remain vulnerable ahead of a week of important U.S. economic data that could shift rate-cut expectations.
Rate Cuts in Focus
A strong U.S. jobs print on Friday could keep rate-cut hopes subdued and further pressure crypto. If the labor market remains robust, the Federal Reserve may hold rates higher for longer, reducing the appeal of risk assets including bitcoin. The week ahead will test whether crypto can stabilize or if AI equity momentum continues to drain liquidity from digital assets.
Frequently asked questions
Why did Bitcoin fall below $70,000?
Bitcoin researcher Pierre Rochard attributed the decline to a massive parabolic spike in AI-related equities vacuuming up excess liquidity, rather than Strategy's recent sale of 32 BTC. Crypto markets are also vulnerable to upcoming U.S. economic data and rate-cut sentiment.
What does Strategy's bitcoin sale have to do with the price drop?
Strategy sold 32 BTC for $2.5 million, which some attributed to the decline. However, researchers argue the sale itself is not the primary driver—instead, liquidity is being drained by AI equities markets.
