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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.
Oracle’s 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.
In tandem, Bitcoin fell below $90,000, likely as a result of the new sensitivity found in tech and AI stress.
Oracle reported that its quarterly revenue had fallen short of expectations and its stock was subjected to a sharp selloff. Its shares fell as much as 14-16%, erasing about $80 billion off its market value after investors cast doubts over the sustainability of artificial intelligence-led expenditure.
Oracle also said it plans to ramp up capital investments in AI from about $35 billion annually, on average, over the last 3 years to an expectation of $50 billion annually; financed through increased debt.
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 “AI bubble” fears, as big investments in AI infrastructure are yet to yield consistent returns.
Reports cited investor concerns over rampant 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 Oracle’s stock declined that Bitcoin prices came under pressure.
Bitcoin dropped below $90,000, a level it was previously able to defend, as risk sentiment weakened across both tech and crypto.
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 especially tech high-flyers fell along with Bitcoin and added downwards pressure on sentiment across the board.
Nasdaq fell to its lowest close in a week as declining AI and tech valuations dragged on markets.
The decline in Bitcoin and 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 Bitcoin and major tech indexes.
According to reports and market updates, Bitcoin correlated with The Nasdaq 100 (used as a proxy to measure U.S. tech / AI exposure) at almost 0.80 in late 2025. That high coefficient implies that 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 being crypto specific risk-asset to one influenced by tech valuation swings.
This has been a reversal 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 sector can propagate to wider asset markets through liquidity channels.
For instance, spikes in the cost of credit default swaps and widened spreads for company debt tied to A.I. including Oracle’s signal tightening credit conditions.
Such conditions have typically weighed on risk assets as the unwinding of leverage longs pushes up funding costs.
The idea of Bitcoin as a “liquidity barometer” has emerged in commentary.
Academic research and market analysis suggest there are correlations between broad liquidity measures such as M2 money supply indices and Bitcoin’s performance.
When liquidity injections are strong, highly speculative assets like Bitcoin have been out-performers; and vice versa, when credit conditions tighten, these asset prices contract more than usual.
It’s this liquidity dynamics explains how events that shake tech and AI investors can easily infect crypto markets.
Following Oracle’s post-earnings sell-off, markets had a mixed reaction.
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 Nvidia’s subsequent earnings provided some relief to risk sentiment.
The short-term price action is speaks of the transactional nature of contemporary markets, while algorithmic trading combined with ETF flows and macro narratives can amplify movements in not just tech equities but also Bitcoin during major news events.
The current Bitcoin-AI market link remains sensitive to shifts in tech earnings, liquidity signals and risk appetites.
Oracle’s earning shortfall has drawn attention to a pronounced Bitcoin AI market link in which Bitcoin’s price action seems to be more heavily influenced by risk asset dynamics tied to technology/AI valuation sentiment.
However, by being well-correlated with tech indices such as Nasdaq 100, and moving in synchronized patterns in risk-off periods, they show how Bitcoin has transformed.
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-driven behavior in crypto becomes critical for short-term price action interpretation and broader financial market interconnectedness.
Bitcoin (BTC): The biggest cryptocurrency by market value, 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 of intelligent behaviour, or simulating intelligent behavior.
Correlation Coefficient: A statistical value showing how two prices of assets move along with each other.
Nasdaq 100: A stock market index 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 securities can be bought or sold in the market without affecting the price.
Credit Default Swap (CDS): 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, and just as much both asset types coincide in a risk sentiment/liquidity driven fashion.
Oracle’s (ORCL) earnings shortfall and aggressive AI spending plan added to concerns about whether the outsized valuations of AI are 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, $BTC’s relationship with tech indexes like the 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 tech and 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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