Bitcoin Gains Momentum but Faces $78,000 Hurdle as AI Power Demand Squeezes Mining Profits

Bitcoin has historically shared the Nasdaq technology sector’s appetite for risk, but it has recently weakened even as technology stocks hit record highs. Stalled cryptocurrency legislation in the U.S. Congress has dimmed expectations for policy support. Meanwhile, miners are redirecting power and data-center resources to AI computing, prompting the market to reassess the outlook for the mining industry.

As of July 20, 2026, Bitcoin had fallen below $75,000, sharply decoupling from the rally in U.S. technology stocks. Recent reports said pro-crypto legislation remained stuck in Congress. Miners are also reallocating capital and computing capacity amid the AI boom, cooling investors’ risk appetite and sustaining selling pressure across the crypto market.

Bitcoin and U.S. technology stocks have become increasingly correlated in recent years, with both driven by risk appetite, interest-rate expectations and capital flows. Wall Street's concerns over AI software valuations and growth prospects also triggered selling in crypto assets and mining companies. The $64,000 level is therefore not only a price threshold but also a key gauge of whether capital is returning to high-risk assets.

Bitcoin rebounded from its lows on Tuesday, though the reports did not specify the date, retaking $64,000 and lifting cryptocurrency mining stocks. The latest gains coincided with a narrowing of losses in AI-related software shares, suggesting market anxiety had temporarily eased. The reports did not identify individual miners or financial institutions or provide stock-specific gains; the confirmed key figure is Bitcoin's $64,000 price level.