Bitcoin Drops Under $90,000 Following Fed Rate Cut Despite Stock Market Rally

Bitcoin slipped back under $90,000 on Thursday as renewed doubts over the profitability of AI investments rattled technology markets and deepened weakness across cryptocurrencies. Sentiment deteriorated after Oracle issued a disappointing profit and revenue outlook, warning that heavy AI infrastructure spending has yet to generate the returns investors expected.

The crypto market extended its declines from late Wednesday, when the Federal Reserve’s rate cut added to uncertainty rather than easing it. Bitcoin fell 2.5% to $90,056.24, while ether dropped 4.3% to $3,196.62, wiping out gains from earlier in the week.

The broader risk-off mood spilled into global markets, with Asian stocks retreating and futures signaling weaker opens in both Europe and the U.S.

Analysts say digital assets remain vulnerable without firmer signs of a rebound, and long-term bitcoin forecasts have been sharply scaled back amid the sector’s increasingly fragile sentiment.