The cryptocurrency market experienced a significant downturn on Thursday, with Bitcoin slipping below the $90,000 mark. This slump in digital currencies comes amid heightened market apprehension fueled by concerns over profits generated from artificial intelligence. Tech stocks took a hit in response to these concerns and the overall sentiment of risk in the market turned sour.

AI Concerns Impact Tech Stocks and Bitcoin

Recent financial updates from U.S. cloud firm Oracle have added to the growing unease. Oracle’s profit and revenue outlook fell short of expectations, with its executives also indicating an increase in spending. This suggests that the profits from AI infrastructure are not being realized as swiftly as investors had initially anticipated. Such developments have dented the risk appetite in the market, impacting not only technology stocks but also cryptocurrencies like Bitcoin.

Bitcoin and Ether Take the Hit

Specifically, the price of Bitcoin fell by 2.5 per cent to stand at $90,056.24, while Ether witnessed a steeper decline of 4.3 per cent to land at $3,196.62. This effectively wiped out the gains made by these cryptocurrencies over the past two days. The downward trend was triggered by the decision of the Federal Reserve to cut interest rates, causing a ripple effect in the U.S. trading session on Wednesday.

Market Analyst’s View on Crypto Decline

Tony Sycamore, a market analyst at IG in Sydney, offered his perspective on the situation. He noted that despite other risk assets performing well, cryptocurrencies didn’t follow suit. Sycamore explained that the crypto market needs more convincing evidence that the washout seen from the October 10 sell-off has come to an end. However, current indications suggest that the market is not quite there yet.

Downward Revision of Bitcoin Forecast

In a related development, Standard Chartered slashed its Bitcoin forecast on Tuesday. The bank had previously anticipated that Bitcoin would reach $200,000 by the end of 2025. However, this forecast has now been halved to $100,000. Geoff Kendrick, the global head of digital assets research at Standard Chartered, stated that the buying by Bitcoin digital asset treasury companies is likely over. He proposed that future price increases for Bitcoin will be primarily driven by Exchange-Traded Fund (ETF) buying.

In a nutshell, the cryptocurrency market is going through a tough phase marked by lower-than-expected AI profits and unwelcome financial forecasts. This trend underscores the need for investors to exercise caution and stay updated with market developments.

Ethan Radcliffe

Ethan Radcliffe is a senior reporter and digital editor at The Toronto Insider, specializing in Canadian federal policy, GTA urban development, and national economic trends. With over a decade of experience in North American journalism, Ethan focuses on translating complex legislative and economic developments into clear, accessible reporting for Canadian readers. Ethan’s work emphasizes policy analysis, government accountability, and data-driven reporting, with a strong focus on how federal and provincial decisions impact communities across the Greater Toronto Area and beyond. He has covered infrastructure planning, housing policy, fiscal strategy, and regulatory changes affecting Canadian households and businesses. A graduate of Toronto Metropolitan University’s School of Journalism, Ethan brings expertise in investigative reporting, long-form analysis, editorial standards, and digital publishing best practices. His reporting is guided by verifiable sources, public records, and transparent sourcing. In addition to reporting, Ethan has experience in newsroom editing, fact-checking workflows, SEO-informed journalism, and audience analytics, ensuring stories meet both editorial integrity standards and modern digital discoverability requirements. Ethan is committed to objective, fact-driven journalism and adheres to established ethical guidelines, prioritizing accuracy, clarity, and public trust in all reporting.

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