Bitcoin Price Plummets Below $90,000 Amid Tech Stock Sell-Off and AI Bubble Concerns
December 12, 2025 – In a turbulent trading session, Bitcoin (BTC) has dropped below the $90,000 threshold, reflecting growing unease surrounding the artificial intelligence (AI) sector and its impact on tech stocks.
Bitcoin’s price slid to approximately $87,800 as of the afternoon U.S. trading hours, marking a 2% plunge following an overnight price near $92,500. This movement extended Bitcoin’s recent volatility, with a notable pattern of intraday lows during U.S. market hours observed throughout the week.
AI Bubble Worries Weigh Heavily on Markets
The sell-off in Bitcoin coincides with worsening investor sentiment towards AI-focused companies. The technology-driven Nasdaq index was down by over 1% early Friday, pressured by significant declines in major chipmaker and software firms tied to the AI hype.
Broadcom Inc. (AVGO), a leading semiconductor company and the ninth largest public company by market capitalization, saw its shares tumble 10% despite reporting strong quarterly earnings. The steep drop was driven primarily by a disappointing future outlook that fell short of the market’s lofty expectations.
Similarly, Oracle’s stock suffered a 10% drop on Thursday, followed by an additional 3% decline on Friday, as investors appeared increasingly concerned that the red-hot enthusiasm for AI might be cooling off swiftly after fueling much of the year’s equity gains.
Impact on Crypto and Related Stocks
Bitcoin miners, some of whom have diversified into AI technologies, were also caught in the downtrend following Broadcom’s earnings miss. Notably, Hut 8 Mining (HUT) declined over 5%, while Iren (IREN) and Riot Platforms (RIOT) dropped about 4%. Cipher Mining (CIFR) experienced a smaller but noticeable 2% decline.
Crypto-related equities broadly mirrored the tech sector’s struggles. Robinhood Markets (HOOD) and MicroStrategy (MSTR), both with significant cryptocurrency market exposure, fell nearly 2%. Stablecoin issuer Circle (CRCL) faced a sharper hit, sliding more than 5%, while Coinbase (COIN) saw a modest decrease.
Fed Signals Continued Uncertainty in Monetary Policy
The broader markets had been under pressure since Federal Reserve Chair Jerome Powell’s speech earlier in the week, which suggested a potential pause in interest rate cuts come January. In light of this, the market’s expectations adjusted to anticipate two rate cuts in 2026 instead of the previously forecasted three.
Chicago Federal Reserve President Austan Goolsbee, who opposed a recent rate cut in December, voiced a contrasting view by forecasting more interest rate reductions next year than the current median projection.
With the Fed’s post-meeting blackout period now lifted, additional commentary from other Fed officials throughout the day is expected to provide further insights into the central bank’s stance, particularly whether there will be alignment behind maintaining steady rates at the start of 2026. ### Market Outlook
The combination of AI sector jitters, disappointing earnings outlooks from key chipmakers, and monetary policy uncertainty has contributed to a risk-off environment affecting both equities and cryptocurrencies. Bitcoin’s correction below $90,000 underscores the market’s sensitivity to broader tech sentiment and macroeconomic signals.
Investors will be closely monitoring upcoming Federal Reserve communications as well as corporate earnings updates from other AI-related companies to gauge whether this sell-off marks a temporary pullback or a more sustained shift away from the high-growth technology and crypto sectors.
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