Bitcoin Price Warning: Kimi K3-Led AI Selloff Could Push BTC Below $60K

Bitcoin (BTC) fell below $63,000 on Friday as the launch of Moonshot AI’s Kimi K3 model intensified concerns about stretched artificial-intelligence valuations and triggered a broader retreat from risk assets.

On Friday, the BTC/USD exchange rate was down approximately 1.75% to under $62,750, reversing from an intraday high near $64,775.

The decline mirrored losses across global technology and semiconductor markets, where investors were reassessing the enormous valuations attached to the AI boom.

Kimi K3 Launch Triggers AI Valuation Concerns, Hurting Bitcoin

Chinese startup Moonshot AI unveiled Kimi K3, a 2.8-trillion-parameter open model designed for coding, reasoning, and complex tasks.

Its strong benchmark results challenged the belief that only heavily funded US companies can develop frontier-level AI. Shares of Chinese rivals Zhipu AI and MiniMax consequently fell around 22% and 14%, respectively.

The reaction reflected fears that capable open models could intensify competition, reduce AI prices, and weaken returns on expensive models, chips, and data centers.

Kimi K3 arrived amid existing concerns about inflated AI valuations, semiconductor overcapacity, and uncertain returns on infrastructure spending. Taiwan’s stock index fell around 5.7% on Friday, while Japan’s Nikkei approached a 6% decline.

US futures were down across the board.

Bitcoin often moves alongside technology stocks when investors reduce exposure to risky assets, which may have served as the root cause behind its intraday decline on Friday.

Renewed US–Iran tensions and rising oil prices also increased inflation concerns, weakening the appetite for riskier cryptocurrencies like Bitcoin.

Bitcoin Rising Wedge Breakdown Targets $58,500

Bitcoin’s four-hour chart shows price extending its breakdown from a rising wedge, a bearish pattern formed by two converging, upward-sloping trendlines.

After breaking below the wedge’s lower boundary, BTC rebounded toward the same trendline near $64,500–$65,000 and tested it as resistance. Such breakdown-and-retest moves are common, as former support often flips into resistance before the decline resumes.

Bitcoin’s rejection from the retest area, followed by a drop below its key short-term moving averages, strengthens the bearish scenario. The wedge’s measured target sits near $58,570, implying another 7% decline.

A sustained recovery above $65,000 would weaken the setup for now.