Bitcoin hovered around $102,000 on Friday as crypto markets struggled to sustain a rebound, weighed down by renewed caution in global equities and a stronger dollar.

The total crypto market capitalization edged up 1% in the past 24 hours to $3.4 trillion, its first gain after four straight days of decline, though traders remain wary that the move is little more than a pause in the selloff.

The slight uptick came as investors rotated out of major tech names, unwinding parts of this year’s artificial intelligence rally.

The Nasdaq and S&P 500 extended losses, with traders questioning whether stretched AI valuations — and the trillion-dollar funding ambitions of OpenAI — are sustainable. The risk-off sentiment has spilled into digital assets, where speculative appetite remains thin despite recent policy easing by the Federal Reserve.

“The market looks more like it’s catching its breath than reversing,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin is holding above its 50-week moving average for now, but intraday charts show sellers are trying to seize control again. Time is on the bears’ side unless macro sentiment improves.”

Crypto prices traded mostly lower on Friday, extending the week’s drawdown as traders remained risk-averse following weakness in global equities. Bitcoin BTC$102,012.68 slipped 1.3% in the past 24 hours to around $102,000, while Ether ETH$3,355.00 fell 1.1% to $3,353, deepening its 13% weekly loss. Solana’s SOL led major declines with a 1.4% daily drop and a 15% slide over seven days, while XRP fell another 4% after its recent wallet-activity spike.

Among top altcoins, BNB and Dogecoin managed small gains of around 1%, offering brief respite after heavy selling earlier in the week. The total crypto market cap hovered near $3.4 trillion, suggesting limited dip-buying interest. Traders say sentiment remains fragile as stronger U.S. dollar flows and persistent macro uncertainty continue to pressure risk assets.

According to Hashdex, risk aversion and uncertainty over the Fed’s rate path continue to pressure digital assets. Meanwhile, Wintermute noted that institutional liquidity has shifted toward traditional markets, leaving crypto underperforming relative to other asset classes.

Still, some signs of accumulation persist. Data from on-chain analytics firm Glassnode shows “accumulator addresses” — wallets that only buy and never sell — have added over 375,000 BTC in the past month.

At the same time, short-term holders are using every rebound to exit at a loss, a pattern typical of late-stage corrections.

While a drop below $100,000 could invite another round of forced liquidations, traders say a stable macro backdrop — and a decisive turn in equity sentiment — would be needed to restore bullish momentum.

For now, the market remains caught between optimism about easier liquidity and the reality of a still-risk-averse investing climate.