Bitcoin’s value plummeted below $90,000 on Thursday, reigniting concerns about market stability as technology stocks were impacted by fresh worries over artificial intelligence profits. This downturn was mirrored in other cryptocurrencies, which also experienced a significant decline in value.
As of the latest update, Bitcoin had dropped 2.5% to $90,056.24, while ether suffered a 4.3% loss, falling to $3,196.62. This erasure of gains from the past two days and the extension of weakness that began during the US trading session on Wednesday followed the Federal Reserve’s decision to cut interest rates. The Fed’s move, aimed at stimulating economic growth, seems to have had an immediate and noticeable impact on the cryptocurrency market.
The decrease in cryptocurrency values can be attributed to several factors, including the performance of technology stocks. US executives have expressed concerns over higher spending, particularly after Oracle’s profit and revenue outlook missed forecasts. This suggests that investments in artificial intelligence infrastructure are not yielding profits as quickly as investors had anticipated. The cloud firm’s underperformance has raised questions about the viability of AI-driven investments, contributing to the decline in technology stocks and, by extension, cryptocurrencies.
In a related development, Standard Chartered has revised its forecast for Bitcoin, slashing its expected value by the end of 2025 from $200,000 to $100,000. This significant adjustment reflects the growing uncertainty surrounding the cryptocurrency market and the impact of external factors such as AI and interest rate changes.
The decline of Bitcoin and other cryptocurrencies serves as a reminder of the volatile nature of the digital currency market. As investors and financial institutions continue to navigate this landscape, they must consider the potential risks and rewards associated with investments in cryptocurrencies and AI-driven technologies. The recent downturn may prompt a reevaluation of investment strategies and a closer examination of the factors influencing market trends.