Big Tech AI profit fears trigger crypto market sell-off, says report

Growing doubts about the profitability of Big Tech's AI investments and the resulting decline in tech stocks have triggered a sharp downturn in the cryptocurrency market, according to an analysis by DL News. Kraken Vice President Matt Howells-Barby noted that concerns over Big Tech's AI investments failing to generate expected returns are unsettling the broader risk asset market. He suggested that Bitcoin could potentially fall below the $80,000 level again. The report highlighted that Microsoft (MSFT) saw its market capitalization decrease by approximately $357 billion in a single day due to a drop in its stock price. This has fueled a wider risk-off sentiment, with even the price of gold falling by nearly 3% as investors hedge against market risks. Adding to the market uncertainty are renewed fears of a U.S. federal government shutdown. Amid these pressures, the total cryptocurrency market capitalization has fallen below the $3 trillion mark.