Bitcoin and Ethereum steadily rise, Oracle's stock price drops over 11% triggering AI investment risk concerns, market watches for the next rate cut

On Thursday, the US stock market retreated, with Oracle’s stock plunging over 11%, marking the largest decline in nearly a year. The market is once again concerned that the rapid growth of artificial intelligence (AI)-related capital expenditure, which far exceeds actual returns, may put pressure on the balance sheets of tech giants. In contrast, the cryptocurrency market performed relatively well, showing a mild decoupling from the weakness in tech stocks.

Data shows that Bitcoin (BTC) re-approached $92,000, continuing a slight rebound after holding onto a key support level, rising about 2.6% for the day. Traders are more focused on maintaining trend structure, with capital flowing into major assets and risk appetite remaining cautious. Ethereum (ETH) also rose to around $3,260, while SOL increased by over 6%, outperforming mainstream assets and indicating a recovering demand for high-volatility Layer-1 tokens.

Other major cryptocurrencies remained volatile. XRP and BNB posted limited gains, still awaiting signals related to spot ETFs. Dogecoin (DOGE) experienced a slight rebound but remained weak on the weekly chart, reflecting lingering market caution and a wait-and-see sentiment.

The pressure on the tech sector mainly stems from the stress signals released by Oracle’s earnings report. The company disclosed that quarterly capital expenditure surged to about $12 billion, well above market expectations, and raised its full-year capital expenditure forecast to $50 billion, an increase of $15 billion from previous predictions. This further deepened market doubts about whether AI investments can quickly translate into cloud computing revenue.

Oracle’s stock price fell to its lowest level since early 2024, with its credit risk indicator rising to the highest level in 16 years, triggering a broader correction in tech stocks. The Nasdaq 100 index also declined, with investors shifting some funds to non-tech sectors to prepare for potential short-term valuation adjustments in the AI sector.

The overall resilience of the crypto market is also influenced by macroeconomic uncertainties. Analysts point out that there are still significant disagreements over whether the Federal Reserve will cut interest rates again in January. Some institutions expect inflation improvements to drive a rate cut in March, while others believe policymakers need more time to observe economic conditions, with rate cuts possibly delayed until June or later.

In the short term, market trends are likely to depend more on corporate earnings and liquidity conditions rather than on single policy signals. Overall, investor sentiment remains strategically cautious, awaiting further clarity on macro policies and the profitability outlook of the tech industry. (CoinDesk)