AI Investment Reality Check Triggers Crypto Market Pullback; BTC Slides as Growth Concerns Mount

Bitcoin and the broader cryptocurrency market faced significant headwinds on Thursday, with investors reassessing their appetite for risk assets amid disappointing signals from the technology sector. The leading digital asset tumbled to $87,630 (approximately £69,000 GBP equivalent), marking a notable retreat from the $90,000 psychological threshold. Ethereum followed suit, dropping to $2,950 with a 24-hour decline of -0.73%, erasing recent session gains.

Tech Sector Weakness Cascades Into Crypto

The catalyst for the selloff centered on artificial intelligence profitability concerns. Oracle Corporation, a heavyweight in cloud infrastructure, released guidance that fell short of market expectations on both revenue and profit metrics. More troubling for growth-focused investors, the company signaled accelerating capital expenditures ahead—indicating that massive AI infrastructure buildout has yet to deliver the financial returns many anticipated. This divergence between investment scale and profit realization sent ripples across risk-sensitive markets globally.

“Even as risk assets broadly held their ground overnight, the cryptocurrency sector showed reluctance to participate in any relief bounce,” observed Tony Sycamore, an analyst at IG’s Sydney office. “For crypto to build a sustainable floor, we need tangible proof that the October 10 washout was truly a capitulation event, and frankly, the data isn’t convincing on that front.”

Institutional Reassessment Reshapes Bitcoin Outlook

The market recalibration extended to major financial institutions. Standard Chartered recently pivoted its 2025 year-end Bitcoin price target downward—from $200,000 to $100,000—a substantial revision that reflects changing assumptions about demand drivers. Geoff Kendrick, who heads the bank’s digital assets research division, emphasized a critical constraint: corporate digital asset treasury accumulation has likely plateaued. This means Bitcoin’s near-term support mechanism shifts to a single pillar—ETF inflows—removing what had been a more diversified bid structure.

The Asian equity complex declined in tandem, setting a negative tone for European and U.S. market opens. The convergence of AI disappointment, elevated Treasury spending signals, and the Federal Reserve’s rate-cut pause continues to weigh on sentiment across growth-linked investments, including cryptocurrencies.