Bitcoin reversed a run toward $85,000 after Tesla reported lower-than-expected capital expenditure in Q3.

Bitcoin (BTC) fell nearly 3% on Thursday after an attempt to break higher was rejected near $85,000.

Data from TradingView showed BTC/USD retracing around Wednesday’s daily close, subsequently returning below $82,000. The pair gave back the entirety of the gains made on that day, when price peaked at around $84,840 on Bitstamp.

Higher-than-expected US corporate earnings had helped spark a rally in both crypto and stock markets. However, results from Tesla after the Wall Street closing bell did not provide the same promising signals as seen from SpaceX and General Motors earlier in the week.

The company reported Q3 revenue of $28.05 billion, just short of Bloomberg’s $28.13 billion estimate. However, capital expenditure came in at $4.73 billion, well below the projected $7.96 billion. The capex numbers appeared to fuel concerns over the AI sector as markets recovered from last week’s Asia tech-stock sell-off.

“Lower capex suggests less of an ‘all-in’ approach to the AI arms race than one would expect from Elon,” Ryan Lee, senior vice president of product ⁠and strategy at Direxion, told Reuters, referring to Tesla CEO Elon Musk.

On the company’s earnings call, Musk said spending would rise through 2028.

“I think capex is actually ending up being a little lower than we anticipated, but we’ll start to become more meaningful next year. And then noticeable in the tens of billions in ’28,” he said, quoted by Bloomberg.

52%, struggling to sustain a recovery after dropping to 5,460 points last week, its lowest level since late July.

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