Digital Assets Under Pressure as AI Profit Questions Trigger Broader Selloff in Risk Markets

The cryptocurrency market faced renewed headwinds Thursday as investor concerns about the viability of artificial intelligence returns cascaded across technology equities and into digital assets. Bitcoin slipped to $87.71K—down 0.14% on the day—while Ethereum declined to $2.94K, wiping out consecutive session gains. The underlying catalyst stemmed from weakness in legacy markets: Oracle’s guidance disappointed the street with lower-than-anticipated profit and revenue projections, while company leadership telegraphed elevated capital expenditures on AI infrastructure. This disconnect—massive spending without proportional earnings acceleration—spooked allocators broadly.

Market Sentiment Shifts as Recovery Signals Remain Elusive

The selloff extended beyond U.S. trading from the prior day, where a Federal Reserve rate cut failed to arrest the decline. Asian equities followed suit, setting a bearish tone for European and American opens. “Even though broader risk sentiment held up, the crypto space showed little enthusiasm to participate,” observed Tony Sycamore, market analyst at IG Sydney. “Investors need much clearer evidence that the October 10 washout has fully cleansed the market—and frankly, we’re not seeing it yet.”

This hesitation speaks to a deeper concern within the crypto 4 year cycle discussion: whether the sector has genuinely repositioned after its October correction, or whether structural fragility persists. Traditional recovery markers that typically underpin rallies—corporate treasury purchases and ETF inflows—show mixed signals at best.

Institutional Forecasts Turn Conservative

Standard Chartered revised its year-end 2025 Bitcoin target downward from $200,000 to $100,000, a move that underscores mounting caution among institutional researchers. Geoff Kendrick, leading the bank’s digital assets research, attributed the recalibration to a view that corporate demand for digital asset treasuries has likely plateaued. With that demand pillar deteriorating, price appreciation will hinge substantially on a “single driver—ETF purchasing momentum.”

The crypto 4 year cycle historically suggests periods of consolidation and skepticism precede genuine recovery; whether current conditions represent such a inflection point remains the open question for market participants.