Bitcoin traded lower on Tuesday, caught in the crossfire of renewed investor anxiety over artificial intelligence spending and a sharp sell-off in the semiconductor sector.

The digital asset’s decline mirrors a broader retreat from high-growth technology equities, as market participants reassess the sustainability of capital expenditure cycles in the AI infrastructure build-out.

This development follows a period of significant weakness for Bitcoin, which recently breached the critical $60,000 support level that had held for almost two years.

The pressure on Bitcoin reflects a deepening correlation with risk assets, particularly growth-oriented tech stocks.

As semiconductor shares faced heavy selling, the cryptocurrency struggled to find support, extending a downtrend that has already pushed prices to their lowest levels in nearly two years.

The move underscores how macro-level concerns about tech valuation and spending efficiency are now spilling over into digital assets.

This development follows a period of significant weakness for Bitcoin, which recently breached the critical $60,000 support level that had held for almost two years.