Crypto Market Stumbles as Investor Confidence in AI ROI Weakens

The cryptocurrency market faced renewed pressure on Thursday, with Bitcoin retreating to $87.63K and Ethereum sliding to $2.95K, reflecting broader concerns about the profitability trajectory of artificial intelligence investments. The decline marked an acceleration of the sell-off that began earlier in the week, signaling that investor appetite for risk remains fragile despite recent central bank stimulus measures.

Market Downturn Signals Growing Skepticism

Bitcoin’s retreat below the $90,000 threshold, accompanied by a 4.3% drop in Ethereum, followed disappointing corporate earnings guidance in the tech sector. Oracle’s cautious outlook on profit margins and disclosure of anticipated increases in capital expenditure triggered a reassessment of AI investment returns. The company’s signals that infrastructure spending is not yet yielding proportional profits have spurred investors to recalibrate their positioning across growth-oriented assets.

“The disconnect is striking,” noted Tony Sycamore, an analyst at IG Sydney. “Even as risk sentiment improved elsewhere, digital assets have shown reluctance to participate meaningfully. The market awaits tangible confirmation that the October 10 selloff represented a genuine capitulation, not merely a pause in the downtrend.”

Institutional Outlook Turns Cautious

The weakness in cryptocurrencies was mirrored by declines across Asian equity markets, with implications for potential downside momentum in European and U.S. trading sessions. Standard Chartered’s revision of its year-end Bitcoin target from $200,000 to $100,000 underscores the recalibration in institutional expectations.

According to Geoff Kendrick, the bank’s lead analyst for digital assets research, the trajectory of price support has fundamentally shifted. Corporate entities appear to have concluded their major treasury diversification initiatives. Going forward, buying pressure will rely predominantly on flows from spot exchange-traded funds—a narrower foundation than many market participants had previously anticipated. This structural change introduces questions about the sustainability of current valuation levels without sustained inflows from traditional financial institutions.

The combination of deteriorating AI profitability expectations and reduced institutional demand creates a headwind that suggests price discovery may require testing lower support levels before stabilization occurs.