Bitcoin Plunges Below $90,000 Amid AI Bubble Concerns and Tech Market Weakness
December 12, 2025 | By Helene Braun, James Van Straten, Krisztian Sandor | Edited by Oliver Knight
Bitcoin (BTC) has slipped below the $90,000 mark as investor worries over an artificial intelligence (AI) bubble ripple through the technology sector, dragging major tech stocks and cryptocurrencies lower in U.S. trading.
Market Overview
On Friday, Bitcoin experienced a sharp decline, dropping approximately 2% shortly after the U.S. stock market opened, sliding from around $92,500 overnight to nearly $89,800. This decline continues a weeklong pattern of volatility, particularly during U.S. trading hours. The fall below the psychologically significant $90,000 level is drawing attention amid heightened market uncertainty.
At the same time, major U.S. technology indices suffered noticeable losses. The Nasdaq index dropped more than 1% early Friday, compounding investor concerns after Oracle’s 10% slump on Thursday and a further 3% decline in the following session. These moves fueling anxiety that the rapid gains seen earlier this year in AI-related stocks may be stalling or reversing.
Tech Stocks Hit by AI Bubble Worries
Particularly hard hit was chipmaker Broadcom (AVGO), one of the largest market capitalization assets and a bellwether for the semiconductor industry. Despite reporting strong earnings, Broadcom shares plunged 10%. The setback stemmed from an earnings outlook that failed to meet the elevated expectations of investors banking on the AI boom’s continued momentum.
Other AI-focused and tech-related equities retreated as the market digests these disappointments, signaling a potential cooling in enthusiasm for AI-driven growth stocks.
Impact on Bitcoin and Crypto-Related Stocks
The pressure on AI and tech stocks has spilled over into the cryptocurrency space. Bitcoin miners, some of whom have been diversifying into AI ventures, reflected similar investor caution. Shares of miners such as Hut 8 (HUT) fell more than 5%, Iren (IREN) and Riot (RIOT) declined by about 4%, with other mining firms like Cipher (CIFR) also dropping approximately 2%.
Crypto-related equities followed suit, dragged down alongside the Nasdaq. Robinhood (HOOD) and MicroStrategy (MSTR) both declined nearly 2%, while stablecoin issuer Circle (CRCL) bore a heavier loss, falling over 5%. Meanwhile, Coinbase (COIN) saw a slight dip.
These losses come amid ongoing regulatory uncertainties and market jitters fueled by macroeconomic outlooks.
Federal Reserve Influence and Interest Rate Outlook
The broader market atmosphere remains sensitive to signals from the Federal Reserve. Following Federal Reserve Chair Jerome Powell’s speech on Wednesday—which suggested a probable pause in rate cuts come January—markets adjusted expectations from three rate cuts in 2026 to just two.
Chicago Fed President Austan Goolsbee, who had opposed a December rate cut, indicated that he forecasts more rate reductions in 2026 than the current median projection. Several other Fed officials are scheduled to speak in the coming days, ending the post-meeting blackout period. Investors eagerly await these comments for deeper insight into how the Fed might navigate the balance between curbing inflation and supporting economic growth in the coming year.
What Lies Ahead
The convergence of AI bubble fears, disappointing earnings outlooks in key tech firms, and shifting monetary policy expectations has created a challenging environment for risk assets including cryptocurrencies. Market participants will be closely watching further corporate earnings reports and Federal Reserve communications for cues on potential stabilization or further volatility.
Bitcoin’s drop below $90,000 highlights the vulnerability of digital assets to broader equity market dynamics, especially as investors recalibrate risk amid growing uncertainty about the durability of AI-induced market gains.
Current Prices Snapshot (As of Dec 12, 2025)
- Bitcoin (BTC): $90,378.26 | -2.25%
- Ethereum (ETH): $3,117.56 | -4.70%
- Ripple (XRP): $2.0398 | -0.08%
- Binance Coin (BNB): $889.09 | -0.24%
- Solana (SOL): $134.19 | -4.42%
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This article was updated on December 12, 2025, at 4:04 p.m. ET.