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Renewed Market Jitters Hit Cryptocurrencies
Cryptocurrencies experienced notable declines on Thursday as Bitcoin slipped below the $90,000 mark, signaling renewed investor caution. The downturn comes amid mounting concerns about artificial intelligence (AI) profits affecting broader technology stocks.
Bitcoin was last down 2.5% at $90,056, while Ether dropped 4.3% to $3,196, wiping out the gains of the past two days. The weakness extended from the U.S. trading session on Wednesday following the Federal Reserve’s interest rate cut, which initially boosted market sentiment but failed to sustain momentum in the crypto sector.
Asian stock markets also fell, with futures suggesting lower openings across Europe and the United States.
Oracle Profit Concerns Amplify Risk Aversion
Market sentiment turned negative after U.S. cloud computing giant Oracle (ORCL.N) reported quarterly profit and revenue figures that missed forecasts. Executives also flagged higher spending on AI infrastructure, highlighting that these investments are not yielding profits as rapidly as anticipated.
“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.”
The Oracle results underscore how technology and AI-related concerns are spilling over into the digital asset market. Analysts noted that investors are questioning whether AI infrastructure spending will produce returns quickly enough to justify elevated valuations.
Market Adjustments Reflect Cautious Outlook
Standard Chartered’s recent report added to the cautious narrative. The bank revised its Bitcoin price forecast for the end of 2025 from $200,000 to $100,000, reflecting slower anticipated growth amid changes in market dynamics.
“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.”
This adjustment reflects a broader reevaluation of market expectations, highlighting that institutional involvement may no longer be the primary driver of Bitcoin’s short-term price movements.
Technical Weakness and Market Psychology
Bitcoin’s slide below $90,000 represents a psychologically important threshold, adding to market caution. Traders and analysts note that the cryptocurrency market has struggled to regain momentum since the October 10 selloff, and lingering uncertainty around AI spending and tech earnings has intensified risk aversion.
Ether’s sharper decline of 4.3% indicates that altcoins are also sensitive to the broader tech market sentiment. The past two days’ gains were erased, showing how quickly positive momentum can be reversed in volatile market conditions.
Global Market Reactions
Asian equities fell in response to tech sector weakness in the U.S., while European and U.S. futures pointed to potentially lower openings. Investors remain cautious, reflecting broader concerns about inflation, interest rates, and profitability within AI-driven businesses.
The correlation between technology stocks and cryptocurrencies has become more pronounced in recent months. As tech companies report slower-than-expected profits, cryptocurrency markets have mirrored the declines, illustrating how investor sentiment in one sector can ripple into digital assets.
Investor Perspectives on Crypto Outlook
Market analysts suggest that the crypto market requires clear evidence of stabilization before a sustained recovery can occur. Tony Sycamore emphasized the need for confidence in the aftermath of prior market corrections:
“The crypto space really needs to see more convincing evidence that the washout we saw from that October 10 selloff is complete.”
Geoff Kendrick from Standard Chartered highlighted the evolving sources of demand for Bitcoin, noting that ETF-driven purchases may now dominate price movements as digital asset treasury buying slows.
This shift in market dynamics suggests that investor behavior and sentiment may play a more decisive role than institutional accumulation in the near term.
Implications for Crypto Markets
The recent slide highlights how sensitive the cryptocurrency market is to broader tech sector performance. Oracle’s earnings report and concerns over AI spending have reinforced the perception that profitability challenges in technology firms can directly affect digital assets.
Analysts caution that Bitcoin and Ether remain vulnerable to short-term volatility, with key thresholds like $90,000 for Bitcoin acting as important psychological levels for traders. Futures markets in Asia and Europe indicate that market participants are approaching Friday with heightened caution.
