Bitcoin Drops Below $90,000 Threshold as Fears of AI Bubble Hit Market

Cryptocurrencies are tumbling, with bitcoin slipping back below the $90,000 threshold in a renewed sign of market jitters as fresh concerns about artificial intelligence profits weighed on technology stocks, Rian Howlett reported for Yahoo Finance.

Bitcoin was last down 2.5% at $90,056.24, while ether fell 4.3% to $3,196.62.

Risk sentiment soured after U.S. cloud firm Oracle issued profit and revenue guidance that missed forecasts, with executives flagging higher spending — a sign that AI infrastructure outlays are not generating profits as quickly as investors had hoped.

Bitcoin was last down 2.5% at $90,056.24, while ether fell 4.3% to $3,196.62, erasing gains from the previous two days and extending weakness that began during the U.S. trading session on Wednesday after the Federal Reserve cut interest rates.