Representation of Bitcoin cryptocurrency in this illustration taken Sept. 10, 2025.
Dado Ruvic | Reuters
Bitcoin dipped below $95,000 on Friday, extending its four-day slide amidst a broader market pullback fueled by concerns over artificial intelligence-related spending. The world’s largest cryptocurrency by market capitalization briefly touched $94,491.22, its lowest level since May 7th, before recovering slightly.
The digital asset’s decline, nearing 9% week-to-date despite a brief rally to $107,000 on Tuesday, mirrors a similar downturn witnessed in Big Tech stocks. This correlation highlights a growing interconnectedness between the crypto market and traditional tech sectors, as many investors allocate capital across both asset classes.
The sell-off in tech stocks stems from renewed anxieties regarding the escalating investments in AI initiatives by Silicon Valley giants. Concerns over potential overspending and the uncertain return on these massive investments are weighing on investor sentiment.
“There’s less money in the system,” Yat Siu, co-founder of Animoca Brands, a prominent crypto investment and blockchain development firm, explained to CNBC. “This leads to investors selling off assets to address shortfalls or concerns arising from a broader market correction.” This deleveraging process impacts even seemingly robust assets like Bitcoin, illustrating the ripple effects of wider economic anxieties.
The Nasdaq Composite experienced a decline of approximately 0.6% on Friday, with major players like Meta, Alphabet, Intel, Nvidia, and Tesla all experiencing losses ranging from 1% to 2%. This synchronized movement across asset classes underscores the influence of macroeconomic factors and broader market sentiment on both traditional and digital economies.
Crypto-linked stocks also suffered losses on Friday. Microstrategy, a software firm with a significant Bitcoin treasury, dipped 6%. Trading platforms Gemini Space Station and Bullish saw their stocks shed 2%, while Coinbase shares edged down 1%. Digital asset mining firm Bitmine Immersion Technologies also traded about 3% lower.
Siu suggests this crypto market cycle could diverge from historical patterns due to the increasing involvement of institutional investors. Unlike some earlier Bitcoin enthusiasts who adhered to the token’s past four-year price cycles, institutions tend to view market corrections as potential buying opportunities based on fundamental analysis and long-term growth prospects. This dynamic could mitigate the severity of price drops and provide a buffer against prevailing headwinds.
“People expect Bitcoin to plummet to $60,000 based on past four-year cycles and associated corrections,” Siu stated. “However, I don’t think institutions will adhere to that pattern. They’re more likely to perceive this downturn as a strategic buying opportunity.” This shift in market participants and strategies highlights the evolving nature of the cryptocurrency landscape and its increasing integration with traditional financial systems.
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