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This article was first published on The Bit Journal.
Financial markets have experienced a risk-off episode this week, exposing a deepening Bitcoin AI market link.Â
Oracleâs unexpected profit shortfall and ramped-up artificial intelligence (AI) spending plans erased about $80 billion from its market capitalization, leading to widespread losses in shares of Nvidia, AMD, and notable indexes, including Nasdaq.Â
In tandem, Bitcoin fell below $90,000, likely as a result of the new sensitivity found in tech and AIâstress.
Oracle reported that its quarterlyârevenue had fallen short of expectations and its stock was subjected to a sharp selloff. Its shares fell as muchâas 14-16%, erasing about $80 billion off its market value after investors cast doubts over the sustainability of artificial intelligence-led expenditure.Â
Oracle also said it plans to ramp up capital investmentsâin AI from about $35 billion annually, on average, over the last 3 years to an expectation of $50 billion annually; financed through increased debt.Â
The company has drawn scrutiny over funding and return possibilities. This drop was felt across other large tech names, and it was feared that perhaps the AI valuation cycle has gone too far, similar to prior tech bubbles.
Many analysts were quick to debate whether or not this incident signaled some kind of growing problem around âAI bubbleâ fears, as big investments in AIâinfrastructure are yet to yield consistent returns.Â
Reports cited investor concerns overârampant spending on AI and reliance on debt as the main driver for a general risk asset weakness.
It was in the same trading session that Oracleâs stockâdeclined that Bitcoin prices came under pressure.Â
Bitcoin dropped below $90,000, a level it was previously able to defend, as risk sentiment weakenedâacross both tech and crypto.Â
This drop etched an actual market link between Bitcoin and AI where capital movements in tech equities, especially in AI-focus stocks coincided with crypto sell-offs.
According to Reuters, US stock indexes âespecially tech high-flyers fell along with Bitcoin and added downwards pressure on sentiment across the board.Â
Nasdaq fell to its lowest close in a week as declining AI and tech valuationsâdragged on markets.Â
The decline in Bitcoinâand poor performance of tech equities both revealed how firmly crypto sentiment has become entangled with technology risk.
Several data points suggest a higher correlation between Bitcoinâand major tech indexes.Â
According to reports and market updates, Bitcoin correlatedâwith The Nasdaq 100 (used as a proxy to measure U.S. tech / AI exposure) at almost 0.80 in late 2025. That high coefficient impliesâthat Bitcoin prices have been highly correlated with tech stocks.
More analysis even shows that this level of correlation is amongst the highest Bitcoin has seen in years which emphasizes its move from beingâcrypto specific risk-asset to one influenced by tech valuation swings.Â
This has been aâreversal of sorts from previous years in which digital tokens often showed weaker correlation with the traditional equities.
Research on market dynamics shows that stresses in the technology sectorâcan propagate to wider asset markets through liquidity channels.
For instance, spikes inâthe cost of credit default swaps and widened spreads for company debt tied to A.I. including Oracleâs signal tightening credit conditions.Â
Such conditions have typically weighed on risk assets as the unwinding of leverageâlongs pushes up funding costs.
The ideaâof Bitcoin as a âliquidity barometerâ has emerged in commentary.Â
Academic research and market analysis suggest there are correlations between broadâliquidity measures such as M2 money supply indices and Bitcoinâs performance.Â
When liquidity injections are strong, highly speculative assets like Bitcoin have been out-performers; and vice versa, when credit conditions tighten, these assetâprices contract more than usual.Â
Itâs this liquidity dynamics explains how events that shake tech and AI investors can easilyâinfect crypto markets.
Following Oracleâs post-earningsâsell-off, markets had a mixed reaction.Â
Although Bitcoin initially fell below $90,000 during early trade, some recovery was seen in later trades with BTC going back above $92,000 after Nvidiaâs subsequent earnings provided some relief to risk sentiment.
The short-term price action is speaks of the transactional nature of contemporary markets, whileâalgorithmic trading combined with ETF flows and macro narratives can amplify movements in not just tech equities but also Bitcoin during major news events.Â
The currentâBitcoin-AI market link remains sensitive to shifts in tech earnings, liquidity signals and risk appetites.
Oracleâs earning shortfall has drawn attention to a pronounced Bitcoin AI market link in which Bitcoinâs price action seems to be more heavily influenced by risk asset dynamics tied to technology/AI valuationâsentiment.Â
However, by being well-correlated with tech indices suchâas Nasdaq 100, and moving in synchronized patterns in risk-off periods, they show how Bitcoin has transformed.Â
Though initial market responses showed high degree of fluctuations and decline, post earnings bounce backs fluid nature of investor sentiment and capital flows.
As markets mature, the comprehension of AI-drivenâbehavior in crypto becomes critical for short-term price action interpretation and broader financial market interconnectedness.
Bitcoin (BTC): The biggest cryptocurrency by marketâvalue, considered to be a speculative digital asset.
Artificial Intelligence (AI): The discipline of computer science that is concerned with making computer hardware and software capable ofâintelligent behaviour, or simulating intelligent behavior.
Correlation Coefficient:âA statistical value showing how two prices of assets move along with each other.
Nasdaq 100: A stock marketâindex that covers the top 100 non-financial companies on the Nasdaq exchange, weighted heavily toward tech and AI-related stocks.
Liquidity: The degree to which securitiesâcan be bought or sold in the market without affecting the price.
Credit Default Swap (CDS):Â A financial derivative that acts as insurance against the default of issuers of debt.
The apparent correlation between Bitcoin price action and AI tech stocks performance,âand just as much both asset types coincide in a risk sentiment/liquidity driven fashion.
Oracleâs (ORCL) earnings shortfall and aggressive AI spending plan added to concerns about whether the outsized valuations of AIâare sustainable, which weighed down tech stock performance and as part of a correlated risk appetite, Bitcoin seemingly reacted.
Not always. Correlations change, but in the later half of 2025, $BTCâs relationship with tech indexes likeâthe Nasdaq 100 spiked, suggesting greater synchronicity under certain conditions.
Yes. Tightening credit spreads and risk aversion could reduce liquidity for speculative assets, reinforcing downsides in both techâand crypto.
CryptoSlate
Reuters
The Guardian
TodayOnChain
AInvest
Read More: Bitcoin-AI Correlation Explained: How Tech Sell-Offs Now Move Crypto Markets">Bitcoin-AI Correlation Explained: How Tech Sell-Offs Now Move Crypto Markets
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