Market pullback links crypto to tech sentiment
Bitcoin slipped back below the psychological $70,000 level after weakness in equity futures rippled through risk assets. The move highlights how tightly crypto remains linked to broader macro sentiment — especially when technology stocks wobble.
Recent selling pressure followed a pullback in S&P 500 futures, fueled by growing investor concerns that massive artificial intelligence spending may take longer than expected to produce meaningful returns. Shares of Nvidia, Apple, and Alphabet all faced pressure late last week, reinforcing a cautious tone across speculative markets.
Crypto derivatives reacted quickly. Traders reduced leveraged long exposure, signaling hesitation to chase upside momentum without clearer macro support. While spot demand has not collapsed, conviction has noticeably weakened — a classic environment for choppy price action.
Futures funding turns negative — leverage appetite fades
A key warning sign emerged when annualized Bitcoin perpetual funding briefly flipped negative — an indication that traders were paying to hold short positions. Under neutral conditions, funding typically ranges between 6% and 12%, reflecting healthy demand for leveraged longs.
The recent dip below zero suggests buyers are no longer eager to aggressively deploy leverage. Instead, traders appear to be prioritizing capital preservation amid macro uncertainty.
This cooling demand coincides with renewed interest in traditional safe-haven assets. Precious metals have outperformed in recent months, drawing liquidity away from speculative positions. For Bitcoin bulls, the challenge is not panic selling — but rather a slow erosion of risk appetite that suppresses breakout attempts.
Precious metals lead while macro capital seeks safety
Gold and silver have emerged as standout performers over the past two months while equity markets consolidate. Simultaneously, demand for government bonds has increased, pushing yields lower.
The U.S. 10-year Treasury yield recently fell to its lowest level since late 2025 — a sign that investors are rotating toward defensive positioning. This shift does not necessarily reflect confidence in policy direction from the Federal Reserve, but rather a desire to hedge economic uncertainty.
A softer U.S. dollar index has added complexity to the macro landscape. Traditionally, dollar weakness supports risk assets — yet the current environment shows investors remain selective, favoring stability over growth narratives.
AI investment concerns amplify caution
Fresh commentary from Dario Amodei, CEO of Anthropic, intensified investor caution. He warned that the financial payoff from massive AI infrastructure spending could take years to materialize, and that rapid capital deployment into data centers carries structural risks.
Such remarks highlight a growing debate: whether current valuations adequately reflect long-term adoption timelines. This uncertainty spills into crypto markets, where speculative positioning often mirrors broader technology sentiment.
Options market steadies — fear subsides but conviction remains thin
Despite macro stress, Bitcoin’s options market shows signs of stabilization. After an earlier sharp drop toward $60K triggered hedging demand, panic has cooled.
Data from Deribit indicates the put-to-call ratio has normalized near equilibrium. Traders are no longer aggressively positioning for downside — but neither are they signaling strong bullish conviction.
This balance reflects a market waiting for clarity. Volatility expectations remain elevated, yet sentiment has shifted from fear to guarded neutrality.
Outlook — sustainable upside depends on macro clarity
Bitcoin’s struggle below $70K is less about immediate bearish pressure and more about macro hesitation. Traders appear willing to take profits near resistance while waiting for confirmation that economic conditions support renewed risk appetite.
Negative funding alone does not guarantee further downside. However, a durable bullish breakout likely requires improving confidence in global growth, technology investment cycles, and liquidity conditions.
For now, expect rotational flows, headline sensitivity, and tactical positioning to dominate price action — a trader’s market rather than a momentum chase.
Disclaimer: This article is for informational and educational purposes only and reflects personal market observations, not financial advice. Always conduct your own research before making investment decisions.
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