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 linkThis 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

Bitcoin-AI Correlation Explained: How Tech Sell-Offs Now Move Crypto Markets

6 min read

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’s Shocking Earnings and the Growing Skepticism of AI

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. 

Bitcoin AI Market Link ExposedBitcoin AI Market Link Exposed

Reports cited investor concerns over rampant spending on AI and reliance on debt as the main driver for a general risk asset weakness.

Bitcoin Responds Alongside Tech Markets

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.

Cross-Tier Correlations: Bitcoin Versus AI-Driven Tech 

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.

Liquidity Conditions and Market Dynamics

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.

Bitcoin AI Market Link ExposedBitcoin AI Market Link Exposed

Market Reaction and Short-Term Moves After Oracle Decline

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.

Conclusion

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.

Glossary

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.

Why did Bitcoin dip on the basis of Oracle earnings?

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.

Does Bitcoin just trade along with tech stocks?

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.

Did liquidity conditions play a role?

Yes. Tightening credit spreads and risk aversion could reduce liquidity for speculative assets, reinforcing downsides in both tech and crypto.

References

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

Market Opportunity
null Logo
null Price(null)
--
----
USD
null (null) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

eurosecurity.net Expands Cryptocurrency Asset Recovery Capabilities Amid Rising Investor Losses

eurosecurity.net Expands Cryptocurrency Asset Recovery Capabilities Amid Rising Investor Losses

New York, NY/ GlobePRWire / Feb 6, 2026 – eurosecurity.net announces the expansion of its cryptocurrency asset recovery services, reflecting increased demand from
Share
CryptoReporter2026/02/06 17:24
Ethereum to boost scalability and roll out Fusaka upgrade on Dec 3

Ethereum to boost scalability and roll out Fusaka upgrade on Dec 3

Ethereum's Fusaka update may happen on December 3, based on the date set in the latest developer call.
Share
Cryptopolitan2025/09/19 17:00
Google Cloud taps EigenLayer to bring trust to agentic payments

Google Cloud taps EigenLayer to bring trust to agentic payments

The post Google Cloud taps EigenLayer to bring trust to agentic payments appeared on BitcoinEthereumNews.com. Two days after unveiling AP2 — a universal payment layer for AI agents that supports everything from credit cards to stablecoins — Google and EigenLayer have released details of their partnership to bring verifiability and restaking security to the stack, using Ethereum. In addition to enabling verifiable compute and slashing-backed payment coordination, EigenCloud will support insured and sovereign AI agents, which introduce consequences for failure or deviation from specified behavior. Sovereign agents are positioned as autonomous actors that can own property, make decisions, and execute actions independently — think smart contracts with embedded intelligence. From demos to dollars AP2 extends Google’s agent-to-agent (A2A) protocol using the HTTP 402 status code — long reserved for “payment required” — to standardize payment requests between agents across different networks. It already supports stablecoins like USDC, and Coinbase has demoed an agent checkout using its Wallet-as-a-Service. Paired with a system like Lit Protocol’s Vincent — which enforces per-action policies and key custody at signing — Google’s AP2 with EigenCloud’s verifiability and cross-chain settlement could form an end-to-end trust loop. Payments between agents aren’t as simple as they are often made to sound by “Crypto x AI” LARPs. When an AI agent requests a payment in USDC on Base and the payer’s funds are locked in ETH on Arbitrum, the transaction stalls — unless something abstracts the bridging, swapping and delivery. That’s where EigenCloud comes in. Sreeram Kannan, founder of EigenLayer, said the integration will create agents that not only run on-chain verifiable compute, but are also economically incentivized to behave within programmable bounds. Through restaked operators, EigenCloud powers a verifiable payment service that handles asset routing and chain abstraction, with dishonest behavior subject to slashing. It also introduces cryptographic accountability to the agents themselves, enabling proofs that an agent actually executed the task it…
Share
BitcoinEthereumNews2025/09/19 03:52