Bitcoin Holds $65,000 as AI Spending Rout Erases $797 Billion From Tech Giants

Bitcoin has traded closely with AI chip stocks over the past month, prompting investors to view the cryptocurrency as a proxy for the AI capital cycle rather than an asset driven by its own fundamentals. The link also extends to bitcoin miners that have shifted toward AI data-center operations, leaving the sector exposed if technology companies curb infrastructure spending. Bitcoin’s latest resilience is therefore testing whether that relationship is beginning to loosen.

The Magnificent Seven fell 4.8% on July 23, erasing about $797 billion in market value in their worst session since the April 2025 tariff shock, Bloomberg reported. The selloff followed Alphabet’s decision to raise the upper end of its 2026 capital-spending forecast to $205 billion and Tesla’s warning of a spending surge. In Asian trading on July 24, bitcoin stood at $65,254, down less than 1% over 24 hours but up about 2.7% for the week, according to CoinGecko.