Bitcoin slides below $75,000 as stocks hit records on AI boom

Bitcoin fell 2% to $74,229 as the Nasdaq 100 and Russell 2000 both reached all-time highs, widening the gap between crypto and equities.

"Bitcoin is being squeezed from multiple directions — miner selling, regulatory delays, and a Fed that's stopped expanding its balance sheet," Sean Farrell, head of digital assets at Fundstrat, said.

TeraWulf jumped 13% after announcing a 1-gigawatt AI and high-performance computing campus in Kentucky, the latest example of publicly listed miners pivoting infrastructure away from Bitcoin. Trump Media & Technology Group transferred 2,650 BTC worth $205 million to an exchange address Friday, per Lookonchain data, adding to selling pressure. The Fed's total assets have held near $6.7 trillion since April 15, removing a liquidity tailwind that had supported risk assets earlier this year.

The $73,000 to $75,000 zone remains the key support band, with $78,000 as resistance. A monthly close below $70,000 would strengthen the bearish case, while the Digital Asset PARITY Act and CLARITY Act — both stalled in the US legislature — offer no near-term regulatory catalyst.

Miners Pivot to AI as BTC Selling Pressure Mounts

TeraWulf's Kentucky expansion is part of a broader trend. Publicly listed Bitcoin miners are redirecting capital toward AI infrastructure, where demand for high-performance computing has pushed memory chipmakers SK Hynix and Micron past $1 trillion in market capitalization. The pivot reduces the pool of miners accumulating BTC on their balance sheets and, in some cases, forces sales of existing reserves to fund new data center builds.

Strategy, formerly MicroStrategy, paused its Bitcoin purchases last week, per company disclosures, indicating a shift toward debt reduction after accumulating heavily through 2024 and early 2025. Bernstein analysts had previously described the company as the "Bitcoin central bank of last resort," making its buying pause a notable demand-side void.

Regulatory Stalemate and a Static Fed

The Digital Asset PARITY Act, which would exempt mining and staking rewards from taxation until sold, was formally introduced in May but has no scheduled hearings. The Digital Asset Market CLARITY Act, which would split oversight between the CFTC and SEC, awaits a full Senate floor vote with no date set. Both bills were seen as potential catalysts for institutional inflows.

On the macro front, the Fed's decision to hold its balance sheet steady near $6.7 trillion since mid-April reflects caution as oil prices rose — Brent crude traded near $96 a barrel. Expansionary policy could exacerbate inflation, limiting the central bank's ability to provide the liquidity boost that risk assets, including Bitcoin, had priced in earlier this year.

Bitcoin's 24-hour trading volume fell to its lowest since July 2023, per CoinGecko data, reflecting thinning participation as traders await a clearer catalyst. The $73,000 support level and the $78,000 resistance define the near-term range, with options expiry on May 29 carrying a max pain price of $75,000.

This article is for informational purposes only and does not constitute investment advice.