Crypto markets were rocked by sharp, two-way volatility in early U.S. trading, with bitcoin (BTC) briefly rallying from around $87,000 to above $90,000 before swiftly reversing and sliding back toward the $87,000 level within minutes.
Bitcoin was last trading near $87,300, down about 0.5% over the past 24 hours, after being more than 3% higher earlier in the session.
The sudden reversal coincided with heavy selling across artificial intelligence-related stocks. Shares of Nvidia, Broadcom and Oracle fell between 3% and 6%, while the tech-focused Nasdaq dropped more than 1%.
Pressure on AI sentiment intensified after reports that Blue Owl Capital had withdrawn funding from a proposed $10 billion Oracle data center project in Michigan.
The rapid price swings triggered over $190 million in liquidations across crypto derivatives markets during the past four hours, according to CoinGlass data. Roughly $72 million in long positions were wiped out, alongside $121 million in short positions.
Thin liquidity continues to weigh on bitcoin’s price action, leaving the market prone to sudden moves driven by external factors, said Hunter Rogers, co-founder of bitcoin yield protocol TeraHash.
“We’re seeing clear signs of market fatigue,” Rogers said. “In that kind of environment, even modest selling pressure can push prices sharply lower.”
He added that holding the $80,000–$85,000 support zone will be critical in determining whether bitcoin faces another leg lower or can stabilize and attempt a more sustainable recovery.
