Bitcoin remains stalled around the $65,000 level, and trader Wise Crypto attributes a significant portion of the stagnation to capital flowing into artificial intelligence rather than digital assets.

The original cryptocurrency briefly pushed above $66,000 earlier this week before losing momentum. The emerging pattern suggests investors are channeling funds toward AI-related equities while persistent inflation and elevated bond yields continue to weigh on risk assets. The dynamic underscores a broader rotation theme that has persisted throughout 2025, as institutional capital increasingly favors equities with direct exposure to generative AI deployment over non-yielding digital assets.

Where the Capital Is Actually Going

Wise Crypto outlined the thesis on X Thursday, highlighting that while spot Bitcoin ETFs have posted seven consecutive days of inflows totaling just under $1 billion, that figure pales in comparison to the $6.9 billion that exited those same funds during May and June. The outflow wave reflects a broader recalibration by allocators who poured into Bitcoin ETFs following their January 2025 launch, with much of that early enthusiasm now redirected toward the AI infrastructure buildout.

Meanwhile, Big Tech is projected to spend between $190 billion and $205 billion on AI infrastructure this year, a combined capital expenditure figure driven by Microsoft, Amazon, Google parent Alphabet, and Meta as they compete to scale data center capacity. Nvidia's data center revenue has surged 92% year over year, and AI-linked stocks have climbed approximately 69% since January. Over the same period, Bitcoin is down roughly 25%.

"Capital is flowing to AI, not crypto," Wise Crypto wrote, citing two-year Treasury yields near 4.3% and ten-year yields near 4.6% as the forces sustaining dollar strength and keeping investors cautious on risk assets. Those yield levels reflect the Federal Reserve's sustained higher-for-longer posture, with the central bank holding its benchmark rate steady as core inflation continues to run above its 2% target.

Price data corroborates the stall. BTC was trading near $65,400 at the time of writing, down 0.6% on the day, after fluctuating between approximately $65,300 and $66,300 over the prior 24 hours and between $62,500 and $66,900 over the past week. The asset remains up nearly 5% across a 30-day window but sits approximately 45% below its all-time high near $126,000 reached last October.

"BTC needs lower inflation, falling yields & stronger demand to break $60K-$70K range," Wise Crypto stated.

Another market observer, Ted Pillows, noted in his Thursday market report that Brent crude is hovering near $94 a barrel following another round of US-Iran strikes. He also pointed to a ten-year TIPS real yield of approximately 2.31%, a post-pandemic high, as a direct drag on non-yielding assets such as Bitcoin.

"I'd rather watch $64,000 get defended than chase a run back toward $66,500," Pillows said.

Technical Levels Traders Are Watching

Michaël van de Poppe stated that Bitcoin has already reached its target area, and that holding above the 21-day moving average keeps the door open for near-term gains. He identified $68,000 as the next resistance zone, with a break above it potentially opening a path to $73,000.

Analyst Axel Adler noted that ETFs have absorbed $439 million so far this week, while the so-called Coinbase discount, now running for 78 consecutive days, has begun to narrow. A narrowing Coinbase premium historically signals improving US-based demand pressure, though its predictive reliability as a bullish indicator has been inconsistent across prior cycles.

Looking further ahead, EGRAG CRYPTO flagged a developing double bottom pattern that would require a weekly close above $83,000 to gain traction. If the setup plays out, $173,000 is the eventual target, though a weekly close below roughly $51,000 would invalidate the formation.

Bitfinex analysts identified a similar reaction zone between $67,900 and $68,300, noting that short-term holders who bought within that range tend to sell once they recover their original positions. This pattern has capped previous rallies and could repeat if the $68,000 level comes back into play. The convergence of multiple analyst targets near $68,000 makes it the most closely watched level for traders gauging whether Bitcoin can transition from its multi-month consolidation into a sustained recovery.