Bitcoin Faces $65K Risk as AI Losses Threaten Selloff

Hilbert Group’s chief investment officer, Russell Thompson, has warned that Bitcoin could decline toward $65,000 if critical support levels break, as mounting losses in artificial intelligence and semiconductor stocks threaten to trigger forced selling to meet margin calls, according to CryptoNews.

Downside Scenarios and Support Levels

With Bitcoin trading near $74,200 at the time of the assessment, Thompson identified initial support at $72,800, with moving average support sitting around $72,700 and a larger trend line near $71,900. He stated that losing the $71,900 trend line would bring $65,000 into focus as a concern, noting that $70,000 offers little technical support beyond its psychological appeal. A move to $71,900 represents an approximate 3.1% decline, while reaching $65,000 would mark a 12.4% drop.

Liquidity and Market Pressures

According to the report, Hilbert’s liquidity models have weakened since Nov. 2, with its five-factor global liquidity model dropping to 2.61 and its six-factor model standing at 3.02. Meanwhile, options pricing heavily favors downside protection, with five-delta put implied volatility at 51 compared to 38 for at-the-money options. Institutional flows also reflected weakness, with estimated Bitcoin ETF withdrawals reaching $1.2 billion last week.

Thompson noted that funding concerns around smaller AI and semiconductor companies could cause wider portfolio strain. However, he expects some capital to eventually return to digital assets once the deleveraging period passes and financial markets stabilize.

Key facts

• Russell Thompson of Hilbert Group warned that Bitcoin could fall toward $65,000 if key support at $71,900 breaks.
• The warning stems from potential forced selling of non-core assets like Bitcoin to cover margin calls from losses in AI and chip stocks.
• Hilbert’s five-factor liquidity model fell to 2.61, and options pricing showed a 13-point premium for five-delta put implied volatility.
• Estimated Bitcoin ETF withdrawals totaled $1.2 billion last week.