AI Profitability Doubts Trigger Bitcoin's Slide as Risk Appetite Cools

Bitcoin has slipped below the key $90,000 threshold on escalating concerns about artificial intelligence spending returns, dragging the broader crypto market into a downward spiral. At latest readings, BTC trades near $93.74K with modest daily gains, while Ethereum has climbed to $3.28K after recovering 3.75% in the past 24 hours. The movements reflect lingering market hesitation rather than sustained bullish conviction.

When Corporate Spending Fails to Deliver Returns

The catalyst for this week’s unease stems from Oracle’s disappointing earnings guidance. The cloud-computing giant not only missed profit and revenue forecasts but signaled escalating capital deployment toward AI infrastructure. This contradiction—massive investment outlays paired with tepid profitability growth—has shaken confidence across growth-dependent assets. Technology stocks felt the immediate pressure, and crypto markets followed suit as investors reassess the risk-reward equation in digital assets.

Crypto analyst Tony Sycamore at IG Sydney noted the disconnect: “Even as traditional risk assets held steady, cryptocurrency showed little appetite to participate. The market needs concrete proof that October’s severe selloff marked a true bottom, yet the evidence remains unconvincing at present.”

Fed Rate Relief Fails to Provide Lasting Support

The Federal Reserve’s recent rate reduction initially appeared to lift risk sentiment, but momentum evaporated quickly. This suggests that macro tailwinds alone cannot sustain crypto momentum when micro-level profitability narratives deteriorate. Broader equity weakness in Asia overnight set the tone for expected declines in European and U.S. trading sessions.

Institutional Demand May Have Already Peaked

Standard Chartered adjusted expectations earlier this week, trimming its year-end 2025 Bitcoin target from $200,000 to $100,000. Geoff Kendrick, the bank’s chief of digital assets research, attributed the downgrade to a shift in demand dynamics: corporate treasuries have likely exhausted their buying cycles. Forward price support now rests almost exclusively on ETF inflows, a narrower foundation than many market participants anticipated. This single-leg support mechanism leaves Bitcoin more vulnerable to sentiment swings and reduced institutional enthusiasm.

The convergence of AI profitability skepticism, fading Fed stimulus effects, and slowing institutional accumulation creates a complex backdrop for investors eyeing Bitcoin near the $90,000 reference point and below.