Bitcoin Slips Under $70K as in Tech Earnings Fallout

Markets are facing fresh pressure today. S&P 500 futures dropped as big tech earnings disappointed investors. Shares of Alphabet and Qualcomm fell hard after their reports. At the same time, bitcoin briefly went below $70,000, a key support level. This comes after two days of losses for major indexes.

What Happened to Today?

S&P 500 futures fell 0.2% in early trading. Nasdaq 100 futures dropped 0.3%. Dow Jones futures lost 108 points, or 0.2%. This pullback follows a rough session yesterday where tech stocks led the decline.

The broad market index and Nasdaq closed lower by 0.5% and 1.5%. The Dow bucked the trend, gaining 260 points or 0.5%. The equal-weight S&P 500 even rose 0.9%, showing strength outside mega-cap tech.

Investors worry about AI costs and chip shortages. But some see this as a buying chance. Sonali Basak from iCapital said on CNBC, “There’s a lot that’s been sold out.” She thinks established software firms will bounce back.

Tech Earnings Shake the Market

Alphabet’s Big AI Bet

Alphabet, part of the Magnificent Seven, reported earnings. It plans huge spending on AI, up to $185 billion in capex by 2026. Shares dropped 3% premarket. Yet, Nvidia and Broadcom rose on the news. More AI spend means more demand for their chips.

This split reaction shows the AI trade is alive. But high costs worry investors about profits.

Qualcomm Hits a Wall

Qualcomm slid 11% after a weak outlook. A global memory chip shortage hurt forecasts. This adds to chip sector pain after yesterday’s sell-off.

Bitcoin and Crypto Feel the Heat

The crypto market sold off too. Bitcoin dipped under $70,000, testing support. Why? Crypto often moves with tech stocks and risk assets. Nasdaq’s drop pulls bitcoin down.

As a blockchain expert, I see this as normal. Bitcoin acts like a high-beta stock in tough times. But long-term, its utility grows. With ETF inflows and halving effects fading, watch for macro cues like Fed policy.

Other coins followed bitcoin lower. Ethereum and altcoins lost ground. Traders eye $65,000 as next support if $70k breaks.

Other Key Market Moves

Peloton Misses Big

Peloton had a bad holiday quarter. Sales missed estimates as shoppers skipped AI fitness gear and higher subs. Next quarter outlook is weak: $605-625 million vs. $638 million expected. Shares tanked.

Fed’s Lisa Cook on Inflation

Fed Governor Lisa Cook spoke in Miami. Economy is solid, but inflation stalled at 2.9% PCE, core at 3%. Tariffs caused a goods price spike. She hopes disinflation resumes as effects fade.

This keeps rate cut hopes alive. Lower rates boost risk assets like bitcoin.

Index Changes Ahead

Ciena joins S&P 500, replacing Dayforce (bought for $12.3B). Shares up 4%. Arrowhead to Midcap 400, ADT to SmallCap 600. Changes start Feb. 9.

Why This Matters for Crypto Investors

Traditional markets drive crypto sentiment. S&P 500 futures struggle signals risk-off. Tech rout hits AI-linked narratives bitcoin benefits from.

• Correlation rising: Bitcoin-Nasdaq link at 0.6+. Tech weakness hurts.
• Buy the dip? Many say yes for oversold tech and software.
• Bitcoin outlook: Hold $70k for rebound to $75k. Break it, head to $65k.
• AI spend boost: Alphabet’s capex helps Nvidia ecosystem, indirectly crypto mining.

Blockchain utility shines beyond hype. With real-world adoption in payments and DeFi, dips are entry points.

What’s Next? Live Updates to Watch

More earnings today. Futures opened mixed last night: S&P up 0.16%, Nasdaq 0.30%, Dow down 0.09%.

Key levels:

Stay tuned for Fed speeches and jobs data. For crypto, on-chain metrics like ETF flows matter most.

Final Thoughts

Bitcoin dropping with tech shares lower is a reminder of market ties. But opportunities arise in volatility. Diversify, watch supports, and focus on fundamentals. Blockchain’s future is bright despite short-term noise.

Will bitcoin hold $70k? Share your views below!

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