AI Profit Reality Check Triggers Crypto Selloff, Bitcoin Struggles Below $90K

The cryptocurrency market faced a sharp correction this week as artificial intelligence investment concerns spooked traders. Bitcoin slipped to $93,240, marking a 1.0% decline over 24 hours, while Ethereum recovered slightly to $3,270 with a 2.09% gain—but losses from earlier this week still loom large.

What Triggered the Downturn?

The sell-off gained momentum after Oracle’s earnings report disappointed the Street. The cloud computing giant revealed its profit margins faced pressure, with executives flagging significantly higher capital expenditure ahead. The message was clear: the massive investment wave into AI infrastructure isn’t delivering the rapid profitability gains investors were pricing in.

This reality check rippled across risk assets globally. Technology stocks weakened in the aftermath, and the ripple effect extended to crypto markets where sentiment had already grown fragile following the Federal Reserve’s rate cut that failed to sustain buying momentum. As one Sydney-based analyst from IG observed, “Even when risk assets performed well elsewhere, crypto participants remained unconvinced. The market is still waiting for hard evidence that the October 10 selloff represented a genuine bottom.”

Looking Ahead: Downward Revisions and Structural Shifts

The profit concerns hit harder because they undermine a key narrative. Standard Chartered significantly revised its Bitcoin year-end price forecast downward—slashing the projection from $200,000 to $100,000. The bank’s digital assets research head explained the reasoning: corporate treasury buying, which had provided steady demand, has likely peaked.

Without that corporate bid supporting the market, the analysis suggests future Bitcoin rallies will depend almost entirely on ETF inflows. This structural shift means the cryptocurrency’s price trajectory now hinges on one major pillar rather than diversified demand sources, potentially reducing downside support in volatile sessions.

The divergence in recent performance—with Ethereum rebounding while Bitcoin languished—hints that traders are selectively reassessing risk exposures as the year unfolds.