Bitcoin Drops Below $90,000 as AI Profit Fears Shake Global Markets
Cryptocurrencies retreated sharply on Thursday, with Bitcoin falling back below the key $90,000 level, reflecting renewed market anxiety triggered by fresh concerns over artificial intelligence (AI) profitability and weakening sentiment in global tech stocks.
AI Profit Concerns Hit Risk Assets
The downturn followed disappointing forecasts from Oracle, whose profit and revenue outlook missed expectations. Executives also signaled higher spending needs — a sign that soaring AI infrastructure investments are not yet translating into the rapid profits investors have been anticipating.
The warning rattled markets, dragging down technology stocks and spilling over into the crypto sector.
Crypto Markets Retreat
Bitcoin slid 2.5% to $90,056 and Ether fell 4.3% to $3,196, erasing gains made earlier in the week. The weakness accelerated during U.S. trading hours on Wednesday, shortly after the Federal Reserve cut interest rates, contributing further to volatility.
Stocks across Asia dropped, and futures pointed to red openings in both Europe and the U.S., reinforcing the risk-off mood.
Analysts: Crypto Still Lacks a Convincing Recovery Signal
Tony Sycamore, market analyst at IG in Sydney, noted that crypto assets failed to follow broader risk markets during recent rallies.
“Crypto didn’t really want to know about it,” he said. “We need more convincing evidence that the washout from the October 10 selloff is complete — and it just doesn’t look like it’s there yet.”
Standard Chartered Cuts Bitcoin Outlook to $100,000
Adding pressure to sentiment, Standard Chartered lowered its long-term outlook for Bitcoin. The bank now expects BTC to hit $100,000 by the end of 2025, down from its previous $200,000 forecast.
Geoff Kendrick, the bank’s Global Head of Digital Asset Research, said the main driver of previous price surges — corporate treasury buying — has largely ended.
“We think buying by Bitcoin digital asset treasury companies is likely over,” he said. “Future Bitcoin price increases will effectively rely on one leg only: ETF inflows.”
