Analysis: Bitcoin fell back to $74,000, with selling pressure on AI stocks dragging down the crypto market.
TL;DR
Bitcoin dropped below $74,000 as AI stock sell-offs, led by AMD's weak outlook, dragged down tech and crypto mining stocks. Weak US job data and Fed stimulus expectations added to market pressures.
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According to ChainCatcher, Bitcoin fell below $74,000 in early US trading due to weakness in tech stocks. The Nasdaq 100 index fell 1%, and the iShares Expanded Tech-Software ETF (IGV) has fallen 17% over the past week due to market concerns about the disruptive impact of AI. Shares of crypto mining companies related to AI infrastructure development also declined, with Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all falling by more than 10%.
The decline stemmed from chipmaker AMD's 2026 earnings outlook falling short of analysts' expectations, causing its stock price to drop 14%. Gold also experienced a sell-off, with prices retreating from a high of $5,113 per ounce to below $5,000. On the economic data front, the US January ISM Services PMI was 53.8, indicating continued expansion in the service sector. However, according to the ADP report, private sector job growth slowed, adding only 22,000 jobs. Quinn Thompson, Chief Information Officer at Lekker Capital, stated that weak employment trends were observed in manufacturing, professional and business services, and large employers, and believes the market is underestimating the scale of stimulus measures the Federal Reserve may introduce in 2026.