Bitcoin and Ether experienced a pullback in trading Thursday, extending a downward trend that began after Wednesday’s Federal Reserve decision to hold steady on interest rates [[1]]. The decline comes amid growing investor concern that anticipated profits from artificial intelligence investments are not yet materializing, as highlighted by disappointing earnings from tech giant Oracle. The cryptocurrency market’s sensitivity to broader economic conditions and tech sector performance is once again on display, with Bitcoin falling below $90,000 and Ether dropping more sharply.
Bitcoin’s price fell below $90,000 on Thursday, signaling renewed market jitters as technology stocks reacted to concerns surrounding artificial intelligence (AI) profits.
The pullback in risk appetite followed disappointing earnings and revenue forecasts from Oracle, a major technology company. Company executives pointed to rising expenditures – indicating that infrastructure spending related to AI isn’t translating into profits as quickly as investors had hoped.
Bitcoin declines amid AI concerns (sites)
Bitcoin was down 2.5% at $90,056.24 in the latest trading, while Ether dropped 4.3% to $3,196.62, giving up gains from the previous two days and continuing a downward trend that began during Wednesday’s U.S. trading session following a Federal Reserve interest rate decision. The cryptocurrency market’s sensitivity to macroeconomic factors was again on display.
“What we’ve seen overnight is that, while risk assets were doing well,” digital currencies didn’t really participate, said Tony Sycamore, a market analyst at IG in Sydney.
He added, “The crypto space needs to see more convincing evidence that the sell-off we saw from October 10th is over.”
