Bitcoin Holds Near $80,000 as AI Debt Concerns Pressure Tech Stocks

Bitcoin (BTC) traded between $80,000 and $83,000 last week as concerns about debt-funded AI infrastructure weighed on technology stocks, keeping its $80,000 support level in focus.

CoreWeave’s five-year credit default swap spread climbed above 1,100 basis points. The rising cost of protection against a debt default added to concern over CoreWeave’s borrowing and pressure on semiconductor valuations. Bitcoin, meanwhile, remained within a narrow range.

A stronger-than-expected U.S. consumer inflation reading briefly pushed the two-year Treasury yield close to 4.9% and the 10-year yield above 5.3%. Treasury buying later brought yields down. A strong Producer Price Index reading on Thursday did not sustain the bond selloff.

Market-implied odds of an October rate increase declined to about 15% after Federal Reserve Chair Kevin Warsh spoke at 11:30 p.m. ET on Thursday, Oct. 15 (03:30 UTC on Friday, Oct. 16). The odds had been below 30% earlier in the week. The retreat in yields accompanied Bitcoin’s continued trading above $80,000.

Equity investors shifted away from semiconductor stocks and toward health care and banks. Britain’s FTSE index, which has less technology exposure than technology-heavy U.S. indexes, outperformed those indexes during the period. Stronger demand for longer-dated Treasuries and Bitcoin’s relative resilience may signal a reduction in concentrated AI exposure.

Bitcoin options also reflected subdued trading expectations. Implied volatility, a measure of expected price swings drawn from options prices, was below its average over the past year across maturities. Dealer positions may have helped contain price moves, but that effect could diminish as options expire and the positions roll off.

The broader range under watch extends from $80,000 to $88,000. Continued equity-market deleveraging could put pressure on crypto, while a sustained Treasury rally alongside lower real yields and a weaker dollar could support risk assets. A lasting move outside that range could bring sharper changes in Bitcoin’s spot price and implied volatility.