The cryptocurrency market experienced a sharp decline on Thursday, with bitcoin falling below $90,000 again. Growing concerns about the profitability of AI investments accelerated sell-offs in technology stocks, and this pressure was reflected in crypto assets as well.
Oracle’s lower-than-expected profit and revenue forecast, along with warnings that AI infrastructure costs will rapidly increase, strengthened investors’ risk-aversion sentiment.
This development was one of the most important factors triggering the decline of bitcoin.Bitcoin fell 2.5% to $90,056 in recent trading, while ether fell 4.3% to $3,196. Thus, both assets erased their gains from previous days. The sell-off that started in the US after the Fed cut interest rates on Wednesday spread to Asian stock markets; European and US futures also indicated weak openings.
IG’s Sydney market analyst Tony Sycamore commented, “Even if risky assets recover, the crypto market doesn’t want to react. We need stronger evidence that the sharp sell-off on October 10 is completely behind us.”
Banks’ Predictions Also Withdrawing
Standard Chartered withdrew its prediction on Tuesday that bitcoin would reach $200,000 by the end of 2025.
It dropped to $100,000. Geoff Kendrick, the bank’s director of digital asset research, said, “Institutional treasuries have largely stopped buying bitcoin. Any future rallies will rely on a single leg, namely ETF demand.”This outlook suggests that uncertainty persists in the crypto market and investor risk appetite remains under pressure due to AI-related concerns.
