Crypto Market Stumbles as AI Profit Reality Check Hits Risk Assets

The cryptocurrency market faced fresh headwinds Thursday as Bitcoin dipped below $90,000, with the digital asset trading near $87.55K amid broader selloff pressures. Ethereum followed suit, sliding to $2.95K, wiping out recent session gains. This pullback wasn’t isolated to crypto—it reflected a wider rotation out of risk assets after major tech names like Oracle signaled slower-than-expected AI profitability and committed to accelerated infrastructure spending.

What Triggered the Downturn?

Oracle’s disappointing guidance served as the catalyst. The cloud computing giant’s profit and revenue outlook missed market expectations, raising fresh questions about whether heavy AI capital investments would translate into near-term returns. This uncertainty rippled through equities first, then cascaded into digital assets. Asian stock markets already showed weakness heading into the session, with European and U.S. equity futures pointing to a softer open.

Market analyst Tony Sycamore from IG Sydney captured the sentiment shift: “Risk assets were holding up, but crypto didn’t follow through. The space needs clearer signals that the October 10 washout has truly bottomed—and right now, we’re just not seeing it.” This skepticism highlights a key tension: without institutional conviction, price floors remain fragile.

The Structural Problem: Where’s the Demand?

Standard Chartered took a more cautious stance this week, slashing its year-end 2025 Bitcoin price target from $200,000 to $100,000. The reason: the research team believes corporate digital asset treasury buying has largely concluded. According to Geoff Kendrick, global head of digital assets research at the bank, future price support will increasingly depend on “one leg only—ETF buying,” removing a major demand pillar that had been supporting valuations.

This shift matters. Retail ETF inflows alone may not be enough to drive conviction rallies if macro conditions remain contested and risk sentiment stays fragile. The Federal Reserve’s recent rate cut also failed to extend momentum, suggesting that traditional monetary policy tailwinds are losing their initial spark.

What’s Next for Bitcoin and Ethereum?

With Bitcoin testing support levels below $90,000 and Ethereum struggling near $2.95K, the immediate focus turns to whether sellers have exhausted themselves. Key questions traders should watch:

• Will corporate treasury demand truly stay dormant, or does this pullback present a buying opportunity?
• Can ETF flows alone stabilize prices without a broader risk-on environment?
• Will the AI profitability narrative stabilize, or do more disappointments loom?

For now, the tape suggests caution. Until clearer evidence emerges that the Oct 10 selloff washout is complete, crypto remains vulnerable to further pressure from skeptical macro conditions and slowing tech momentum.