IBM's plunge drags down the crypto market; is the shift to AI by the masses a sign that Crypto is being marginalized?

In the wave of technological evolution, every breakthrough in artificial intelligence redraws the global capital landscape. On February 23, a “shockwave” triggered by AI technological innovation swept through traditional financial markets and quickly spread to the crypto sector. The stock price of traditional tech giant IBM hit its largest single-day decline in over twenty years, while Bitcoin also dropped below the $63,000 mark. This has prompted deep reflection in the market: as the public frenzy shifts to AI, is Crypto being ruthlessly marginalized by capital?

The Dusk of Blue Chips: Why Did IBM Crash?

On February 23, U.S. stock markets experienced a cold snap, with the Dow Jones plunging over 800 points. Among the most notable was IBM. This century-old “Blue Giant” stock price once dropped more than 13% intraday, marking its biggest single-day decline since 2000.

The immediate cause came from emerging forces in AI. Anthropic’s Claude Code platform demonstrated its ability to automate COBOL system modernization. COBOL, an ancient programming language from the 1950s, still runs about 95% of ATM transactions in the U.S. and many core systems in finance, aviation, and government. For years, maintaining and upgrading these “legacy” systems has been one of IBM’s most stable revenue sources. However, Anthropic’s breakthrough suggests that these tedious and costly consulting tasks could be partially or fully replaced by efficient AI tools in the future. The market’s reaction—selling off IBM—signifies that the panic over AI disrupting traditional business models has reached a new high.

Crypto Market Faces the Backlash

The panic in traditional markets quickly spread to the crypto sector like a contagion. As a risk asset, the crypto market faced heavy selling pressure. According to Gate data, Bitcoin (BTC) briefly fell below $63,000 on February 24, with a nearly 5% drop in 24 hours. Ethereum (ETH) also declined, hovering around $1,800, with a similarly significant drop.

Not only did digital currencies decline, but related listed companies also suffered. Shares of Coinbase, MicroStrategy (now Strategy), and Galaxy Digital generally fell between 4% and 7% during U.S. trading hours. This clearly indicates that, amid tightening global liquidity expectations and rising risk aversion, growth anxieties triggered by AI are causing systemic asset sell-offs. Crypto, as a high-beta asset class, is bearing the brunt.

Capital Migration or Structural Rebalancing?

Faced with the rising prominence of AI concepts, a sharp question emerges for investors: Is capital withdrawing from Crypto and flowing entirely into AI?

Short-term data shows signs of capital outflows. On the same day IBM plunged, traditional safe-haven assets—gold and silver—soared. Spot gold broke through $5,220, and silver futures surged over 7%. This suggests that, amid increased uncertainty, some funds are choosing older safe havens rather than digital gold.

However, it may be premature to declare Crypto marginalized. The market is not entirely bleak; structural opportunities are emerging. Interestingly, Bitcoin miners who have proactively shifted into AI infrastructure—such as IREN, Cipher Mining, and CleanSpark—showed resilience during this volatility, even posting slight gains. This indicates that Crypto and AI are not simply competing; at the computational level, they are forming deep intersections.

Additionally, AI-related sectors within the crypto market remain active. According to SoSoValue data, despite overall market pressure, the AI sector still gained over 2% on February 24, with projects like Worldcoin (WLD) and Fetch.ai (FET) performing well. On platforms like Gate, trading activity for AI-themed tokens remains vigorous, showing that the market is still actively exploring narratives combining AI and Crypto.

Conclusion

The shift of the public focus to AI has indeed created a siphoning effect on Crypto market funds in the short term, intensifying volatility and market segmentation. IBM’s plunge is a symbolic event, warning us that AI’s disruption of traditional industries is unfolding at an unprecedented pace, and this upheaval breeds panic that affects all risk assets indiscriminately.

But rather than signaling the marginalization of Crypto, this may serve as a catalyst for its internal restructuring. Coins that rely solely on concepts will accelerate their淘汰, while projects that genuinely integrate AI narratives—whether providing decentralized computing (DePIN), data labeling, or acting as AI agent payment networks—are brewing new vitality.

For investors, on platforms like Gate, it’s crucial not only to monitor short-term price swings of mainstream assets like Bitcoin and Ethereum (for example, Bitcoin’s current support around $64,000) but also to focus on the core AI + Crypto sector. After the panic subsides, it often presents the best window for strategic, structural opportunities. The market has not abandoned Crypto; it is simply applying stricter standards to identify assets that resonate with the AI era’s true value.