Bitcoin dips below $90,000 as AI profit doubts rattle markets
Bitcoin slipped below the $90,000 mark during Asian trading hours as market sentiment weakened, driven by renewed concerns over the long-term profitability of artificial intelligence companies. The uncertainty dampened overall risk appetite, prompting investors to scale back exposure to high-volatility assets. At the same time, a divided U.S. Federal Reserve on the pace of potential rate cuts added to the cautious mood, creating additional pressure across financial markets.
The broader crypto market followed the downturn, with Ether falling more than 4% intraday and several major altcoins also retreating. Despite the initial slide, Bitcoin later stabilized near the key psychological level of $90,000, though traders remained alert to further volatility. Analysts noted that sentiment could stay fragile until clearer signals emerge from both AI-sector earnings and upcoming Fed guidance.
Market snapshot
Bitcoin traded near $90,000 after briefly undercutting that level, while Ether fell to the low $3,000s. The slide followed Wednesday’s U.S. session and extended in Asia, where risk proxies softened alongside weaker tech sentiment.Reuters+1
Tech sentiment and AI monetization
A key drag came from Oracle, whose profit and revenue outlook missed expectations. Executives flagged higher spending, reinforcing concerns that heavy AI infrastructure outlays have yet to translate into near-term profits feeding a broader de-risking across tech and spillovers into crypto.
Macro driver
The Federal Reserve lowered rates by 25 bps but delivered an unusually split decision, with multiple dissents and guidance that suggested caution about further near-term easing. That mix easier policy but uncertain path kept volatility elevated and risk appetite uneven.
Cross-asset tone
Asian equities weakened and futures signaled softer opens in Europe and the U.S., reflecting the tech/AI wobble and digestion of the Fed. Crypto decoupled from some risk assets that had rallied on the rate move, echoing analyst notes that the October sell-off washout may not be complete.
Context & Analysis
Analysis: Thursday’s action underscores how crypto remains sensitive to macro signaling and the AI investment cycle. The round-number breach near $90,000 likely reflects thin liquidity pockets and headline reflexivity; sustained direction may hinge on whether tech earnings show a clearer AI payback and how the Fed’s path evolves into 2026.
Conclusion
In the near term, the key focus will be whether Bitcoin can regain momentum above the $90,000–$92,000 zone and sustain that strength. A steady move back into this range could help restore confidence after recent volatility, while failure to break higher may keep traders cautious.
At the same time, attention remains on how major tech stocks respond to ongoing debates around AI-related capital expenditure. Upcoming macro data releases, along with any revised outlook from large cloud providers, could heavily influence market direction. These factors together are likely to shape the next significant move across both crypto and tech sectors.
FAQs
Q : Why did Bitcoin fall today?
A : Weak tech sentiment driven by AI monetization doubts and a divided Fed rate cut decision reduced risk appetite.
Q : Did the Fed cut rates?
A : Yes, the Fed cut rates by 25 bps, though dissenting views and cautious guidance limited market optimism.
Q : How far did Bitcoin fall did the dip below $90,000 hold?
A : Bitcoin briefly fell under $90,000 but later stabilized near the level.
Q : How did Ether perform?
A : Ether dropped around 4% intraday, giving back gains from the previous two sessions.
Q : What did Oracle say that affected markets?
A : Oracle’s outlook missed expectations, and management flagged rising AI infrastructure spending, fueling short-term profit concerns.
Q : Are tech stocks and crypto moving together?
A : They often show correlation during major macro or earnings events, though crypto can diverge during liquidity shocks.
Q : What levels matter next for BTC?
A : Traders are watching the $90,000 support and resistance zones in the low $90,000s
Facts
Event
Bitcoin slips under a key round number amid AI profit doubts and a divided Fed cutDate/Time
2025-12-11T10:43:00+05:00Entities
Bitcoin (BTC); Ether (ETH); Oracle Corporation (NYSE: ORCL); U.S. Federal Reserve (FOMC)Figures
BTC intraday low ~$89.5k; Ether ~–4% intraday; Fed –25 bps to 3.5%–3.75% target range (dissenting votes) (units: USD, %) ReutersQuotes
“The crypto space really needs to see more convincing evidence that the washout… is complete.” Tony Sycamore, IG Markets (as reported). ReutersSources
Reuters (Bitcoin/AI link) Reuters; Reuters (Fed cut) Reuters