As new worries over artificial intelligence earnings weighed on technology equities, cryptocurrencies plummeted on Thursday, with bitcoin (BTC-USD) falling again below the $90,000 level in a renewed warning of market anxiety.
After U.S. cloud company Oracle's earnings and revenue outlook fell short of expectations and executives pointed to increased spending, risk sentiment soured. This indicates that investors are not seeing gains from AI infrastructure expenditures as rapidly as they had anticipated.
Bitcoin was recently down 2.5% at $90,056.24, while ether fell 4.3% to $3,196.62, erasing the gains of the previous two days and continuing the decline that started on Wednesday during the U.S. trading session after the Federal Reserve lowered interest rates.
Asian stocks declined, and futures indicated weaker openings in the US and Europe. According to Tony Sycamore, a market analyst at IG in Sydney, "what we saw last night was even though risk assets were doing well, crypto didn't really want to know about it."
"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."
On Tuesday, Standard Chartered reduced its prediction that bitcoin would reach $200,000 by the end of 2025 to $100,000. Geoff Kendrick, global head of digital assets research from Standard Chartered, stated, "We think buying by Bitcoin digital asset treasury companies is probably over." "As a result, we now think future Bitcoin price increases will effectively be driven by one leg only ETF buying."
