Bitcoin drops below $65K as Wall Street sell-off spreads

The cryptocurrency market fell on Thursday as a broad sell-off in U.S. equities, triggered by disappointing technology earnings and escalating Middle East tensions, dampened risk appetite across asset classes. Bitcoin slipped below $65,000, while major indexes posted their sharpest losses in weeks.

Tech Earnings Spark Risk-Off Move

U.S. stock futures pointed sharply lower Thursday morning after Tesla ↗ 0.70% and Alphabet ↗ 0.67% reported earnings Wednesday evening with mixed results. Tesla missed Wall Street's earnings expectations, posting non-GAAP earnings of $0.33 per share against a consensus estimate of $0.51, as heavy AI and battery investments weighed on margins. Alphabet beat revenue and earnings estimates — reporting $119.8 billion in revenue, up 24% year over year — but spooked investors by raising its 2026 capital expenditure outlook to as much as $205 billion for AI infrastructure.youtube+2

The Nasdaq Composite fell 444 points, or 1.73%, to 25,246 within the first hour of trading, while the S&P 500 declined over 1% and the Dow Jones Industrial Average dropped more than 550 points. Rising oil prices, with Brent crude approaching $100 per barrel amid escalating U.S.-Iran tensions, compounded the selling pressure.MarketScreener+1

Bitcoin Consolidates Below $65,000

Bitcoin traded around $65,086 on Thursday, down roughly 1.2% on the day, according to market data. The decline came after a period of consolidation in the $65,000–$66,000 range following a recent breakout above that level. Ethereum dipped to around $1,925.kucoin.com+3

Data from Coinglass showed approximately $161 million in crypto liquidations over 24 hours as of early Thursday, with positions split relatively evenly between longs and shorts. The broader crypto market reflected a cautious tone, with the Fear and Greed Index reading 31, firmly in "fear" territory.ChainCatcher+1

ETF Inflows Offer a Counterweight

Despite the price weakness, spot Bitcoin ETFs have continued to attract institutional capital. BlackRock's ↘ 0.44% iShares Bitcoin Trust (IBIT) ↗ 0.19% has led inflows in recent sessions, absorbing the majority of net flows into the U.S. spot Bitcoin ETF complex. The KuCoin daily market report noted that Bitcoin spot ETFs recorded net inflows for the sixth consecutive trading day heading into Thursday, suggesting institutional demand remains intact even as short-term traders retreat.Bitcoin News+1

The divergence between sustained ETF buying and broader market weakness underscores the tension currently shaping crypto markets: long-term institutional accumulation continuing against a backdrop of geopolitical uncertainty, elevated Treasury yields, and cooling risk appetite in equities.