Bitcoin falls 4% as chip stocks plunge 6.7% and oil surges

• Bitcoin fell 4% to $81,360 as rising oil prices, US-Iran tensions and concerns over AI spending pressured the broader cryptocurrency market.
• Altcoins were not spared, with Ethereum, XRP and Solana falling over 4%, while Zcash dropped 10.6% following the developments.
• Nvidia and Meta fell 4.4% and 7% as investors remain cautious of AI infrastructure spending.

Bitcoin (BTC) fell below $82,000 on Thursday as the crypto market joined a broader market sell-off driven by concerns over artificial intelligence (AI) spending, rising oil prices and escalating geopolitical tensions involving the US and Iran.

Bitcoin drops below $82,000 following fresh macro pressures

The top crypto fell 4% to $81,130 as macro fears weighed on prices across the digital asset market. The decline triggered roughly $474 million in crypto futures liquidations over the past 24 hours, according to Coinglass data.

Altcoins also faced additional pressure, with Ethereum (ETH) dropping 4.4% to $2,376. XRP declined 5%, BNB dropped 2.8% and Solana (SOL) fell 4.1%. Zcash (ZEC) and Hyperliquid (HYPE) also fell 10.6% and 4.8%, respectively.

AI-related cryptocurrencies were not spared, with NEAR Protocol (NEAR), Bittensor (TAO) and Render (RENDER) falling 9%, 8% and 7%, respectively, over 24 hours.

AI spending concerns weigh on technology stocks

The fresh pressure coincided with a decline in US equities, with the Nasdaq and S&P 500 down 2.6% and 1.2%, respectively. Meta Platforms (META) shares also fell 7% despite stronger-than-expected revenue, as investors show concern about rising AI spending and the company’s plans to issue new shares to support its expansion.

Nvidia (NVDA) also fell 4.4%, while SpaceX (SPCX) and (TSLA) declined 9% and 3%, despite positive Q3 earnings. The Philadelphia Semiconductor Index, benchmark for US chip companies, dropped 6.7%, reflecting the scale of the pressure.

The sell-off suggests that strong demand for AI technology alone may no longer be sufficient to reassure investors. Instead, markets are increasingly scrutinizing infrastructure costs and financing requirements.

Nvidia CEO Jensen Huang described demand for AI cloud infrastructure as “off the charts” in an interview with CNBC, highlighting the industry's strong demand but also the financial challenges facing infrastructure providers.

Geopolitical tensions surrounding the United States and Iran have added another source of uncertainty. Brent crude climbed 3.7% to $112 per barrel as concerns about potential Middle East crisis escalation raised fears of supply chain disruptions.

Meanwhile, the US 10-year Treasury Yield fell below 5% as investors sought safer assets amid the market turmoil. Falling yields generally reflect rising demand for existing government bonds, but they do not necessarily signal an improvement in economic conditions.