Post by : Saif Rahman

On Thursday, Bitcoin experienced another dip as its price briefly went below the $90,000 threshold, highlighting the fragility of investor confidence in recent days. This decline was part of a broader downturn in global markets, driven by emerging worries about the profitability of artificial intelligence technology.

The concerns escalated after U.S. cloud computing leader Oracle disclosed a profit and revenue forecast that fell short of expectations. The company cautioned that expenditures on AI infrastructure are surging faster than the returns generated from it. This revelation rattled technology stocks and swiftly dampened the overall appetite for risk in financial markets. Given that cryptocurrencies often align closely with investor sentiment, they reacted promptly to the negative atmosphere.

Bitcoin saw a 2.5% decline, trading around $90,056 at last check. Ether, the second largest cryptocurrency, plunged more significantly by 4.3%, erasing gains from the preceding two days. The selloff commenced in the U.S. on Wednesday, just after the Federal Reserve announced a new interest rate cut.

Asian stock markets also faced a downturn on Thursday, with preliminary signals indicating that markets in Europe and the United States would follow suit. Analysts contend that the current weakness in cryptocurrency indicates lingering uncertainty about whether the market has completely rebounded from the significant selloff on October 10.

Tony Sycamore, a market analyst at IG in Sydney, noted that cryptocurrencies are not exhibiting the same resilience as other risk assets. He stated, “What we observed last night was that even though risk assets were performing well, crypto didn’t really participate.” Sycamore further mentioned that traders are eagerly anticipating definitive signs indicating an end to the market's preceding correction, although such signs have not yet materialized.

In related news, Standard Chartered Bank revised its price forecast for Bitcoin downwards. Previously, the bank had projected Bitcoin could hit $200,000 by the end of 2025; however, this estimate has now been adjusted to $100,000. The bank assesses that purchasing by corporate digital asset treasuries has largely halted. Geoff Kendrick, the bank’s global head of digital assets research, remarked that any forthcoming price increases will highly depend on demand from Bitcoin exchange-traded funds (ETFs).

The recent fluctuations underscore the heightened sensitivity of cryptocurrencies to global economic developments and investor sentiment. With escalating worries regarding AI profitability, interest rate fluctuations, and evolving market sentiment, traders remain vigilant and closely monitor every new development.

For the time being, Bitcoin's drop below $90,000 indicates that uncertainty remains prominent. Whether the market achieves stability shortly or encounters further turbulence hinges on investor reactions to upcoming economic data and updates from the tech sector.

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