AI Reality Check Triggers Crypto Pullback; Bitcoin Struggles Near $90K

The cryptocurrency market is experiencing renewed pressure as investor confidence in artificial intelligence profitability hits a speed bump. Bitcoin pulled back to $91.95K—below the psychological $90,000 barrier—while Ethereum climbed slightly to $3.22K, reflecting divergent sentiment across digital assets. The broader selloff gained momentum after Oracle’s disappointing earnings guidance signaled that massive AI infrastructure investments aren’t generating returns as quickly as the market had assumed.

Market Dynamics: Risk-Off Mood Spreads Across Assets

The crypto downturn is part of a wider risk-aversion pattern gripping global markets. Asian equities retreated alongside digital assets, setting up a cautious opening for European and U.S. bourses. Notably, the Federal Reserve’s recent rate cut failed to reignite bullish momentum, leaving traders uncertain about the trajectory ahead.

“Even though traditional risk assets held their ground, crypto investors remained skeptical,” observed Tony Sycamore, market analyst at IG in Sydney. “The market needs concrete signs that the October 10 washout represents a genuine bottom. Right now, we’re not seeing that conviction.”

AI Spending Concerns Weigh on Risk Appetite

Oracle’s earnings miss—particularly its signaling of elevated future spending—exposed a critical vulnerability in the current narrative. If AI investments aren’t translating into near-term profitability, the risk-on thesis underpinning recent crypto rallies begins to crumble. This concern cascaded through technology stocks and rippled into cryptocurrency, where Bitcoin’s movement has often tracked sentiment in high-growth sectors.

The irony isn’t lost on traders: massive capital deployment aimed at AI advancement has yet to prove its investment thesis convincingly.

Institutional Shifts Shape Price Outlook

Standard Chartered recently recalibrated its year-end 2025 Bitcoin price target to $100,000, down from $200,000. Geoff Kendrick, head of digital assets research at the bank, highlighted a structural shift: “Corporate treasury purchases have likely peaked. What remains is ETF inflows as the primary price driver—a narrower foundation than before.”

This observation carries weight within the crypto 4 year cycle framework, where market phases transition from speculative retail participation to institutional adoption and back. If corporate buying has concluded and price support now rests primarily on ETF flows, the market’s resilience depends heavily on sustained fund inflows during volatility.

What’s Next?

The current correction underscores a familiar pattern in crypto: enthusiasm built on forward-looking narratives (like AI profitability) can evaporate quickly when reality fails to match expectations. Bitcoin’s struggle to hold above $90,000 and the pullback in risk assets suggest traders are reassessing assumptions. Until the market receives more convincing evidence of stabilization, weakness may persist across the crypto space.