AI concerns are impacting tech stocks, putting pressure on the crypto market and mining companies.
TL;DR
Bitcoin dropped below $74,000 as tech stock sell-offs, driven by AI industry concerns, hurt crypto sentiment. Crypto mining stocks like Cipher Mining fell over 10%, mirroring AMD's decline, amid mixed US economic data and potential Fed easing risks.
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On February 5th, Bitcoin briefly fell below $74,000 in early US trading, with the previous day's rebound quickly fading as another sell-off in tech stocks dragged down sentiment in the crypto market. The Nasdaq 100 index continued to weaken, with the software sector experiencing a sharp decline, exacerbating market concerns about the impact of the AI industry.
Shares of crypto mining companies affected by the AI infrastructure concept fell in tandem, with Cipher Mining, IREN, and Hut 8 all dropping by more than 10%, following a 14% drop in AMD shares due to weaker-than-expected 2026 earnings guidance.
On the macro front, US economic data showed mixed performance. The service sector continued to expand, but job growth slowed significantly. Some analysts believe that the market may have underestimated the potential for easing stimulus from the Federal Reserve in 2026.