Bitcoin slips below $90,000 as AI fears hit markets
Cryptocurrencies fell sharply on Thursday, with Bitcoin dropping back below the $90,000 mark amid renewed market jitters fueled by concerns over artificial intelligence profitability and a broader pullback in tech stocks, News.Az reports, citing Reuters.
Risk appetite deteriorated after U.S. cloud company Oracle posted a profit and revenue outlook that missed expectations, while executives highlighted increased spending—an indication that AI infrastructure investments are not generating returns as quickly as investors anticipated.
Bitcoin was last trading 2.5% lower at $90,056.24. Ether slid 4.3% to $3,196.62, wiping out gains from the previous two days and extending the decline that began during the U.S. trading session on Wednesday following the Federal Reserve’s interest rate cut.
Stocks in Asia fell and futures pointed to lower openings in Europe and the United States.
"What we saw last night was even though risk assets were doing well, crypto didn't really want to know about it," said Tony Sycamore, market analyst at IG in Sydney. "The crypto space really needs to see more convincing evidence that the washout we saw from that October 10 selloff is complete, and at this point in time it just doesn't look like it's there."
Standard Chartered on Tuesday slashed its expectations that bitcoin would hit $200,000 by the end of 2025, lowering its forecast to $100,000.
"We think buying by Bitcoin digital asset treasury companies is likely over," said Geoff Kendrick, global head of digital assets research at Standard Chartered. "As a result, we now think future Bitcoin price increases will effectively be driven by one leg only – ETF buying."
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