Bitcoin Falls Below $90K as AI Sell-Off Hits Nasdaq and Crypto Stocks
Bitcoin dropped below $90,000 after U.S. markets sold off amid renewed concerns about the AI sector. Broadcom plunged about 10% after an earnings outlook disappointed investors, dragging the Nasdaq down over 1% and weighing on crypto-linked equities. Bitcoin fell roughly 2% from around $92,500 to near $89,800 after the U.S. open. Crypto miners and stocks tied to both mining and crypto services—Hut 8 (HUT), Iren (IREN/RIEN), Riot (RIOT), Cipher (CIFR), Robinhood (HOOD), MicroStrategy (MSTR), Circle (CRCL) and Coinbase (COIN)—also declined, with stablecoin issuer Circle down more than 5%. Market jitters were compounded by Fed commentary: Jerome Powell’s recent remarks signaled a possible pause in near-term cuts, reducing expected 2026 cuts to two from three, while Chicago Fed President Austan Goolsbee projected more cuts in 2026 than the current median. Traders will monitor upcoming Fed speakers for guidance. Primary keywords: Bitcoin, AI sell-off, Nasdaq, Broadcom, crypto stocks. Secondary/semantic keywords included: miners, stablecoins, rate cuts, Fed commentary, market volatility. This move highlights short-term risk-off sentiment in risk assets tied to tech and macro rates; traders should watch intraday U.S. sessions for further downside pressure and sector correlations.
Bearish
The news is bearish for crypto markets. A tech- and AI-driven sell-off on disappointing earnings guidance from Broadcom spilled into equities and crypto, triggering a ~2% intraday drop in Bitcoin below $90K and declines in mining and crypto-related stocks. The immediate driver is risk-off sentiment: investors are trimming exposure to tech and correlated risk assets during U.S. trading hours. Compounding this, Fed commentary from Jerome Powell reduced near-term easing expectations (two cuts in 2026 vs. three prior), which typically reduces risk appetite for high-beta assets like Bitcoin. Historical parallels: past episodes where tech leadership faltered (for example, AI-related pullbacks in 2024–2025 or chip-earnings shocks) produced short-term crypto weakness and heightened intraday volatility, often leading to multi-day consolidation before macro cues restored momentum. Short-term implications: elevated volatility, potential continuation of intraday U.S. session lows, and further pressure on crypto equities and miners. Traders may favor tighter risk management, reduced leverage, and watching correlation with Nasdaq and chip/AI stocks. Long-term implications: unless macro outlook (Fed cuts, growth) changes materially, fundamentals for Bitcoin (on-chain metrics, adoption) remain separate from transient AI sentiment; long-term holders may view dips as buying opportunities, while momentum traders should wait for confirmation of trend reversal and improved risk sentiment.