Bitcoin has suffered a significant correction falling below $90,000, in a move synchronized with the US technology sector performance. This Bitcoin pullback and AI stocks decline responds to uncertainty generated by the earnings outlook of major chip manufacturers. Austan Goolsbee, Chicago Fed President, signaled diverging projections regarding rate cuts for 2026.
Selling pressure intensified during the US session, taking the leading cryptocurrency to touch $89,800 after trading near $92,500 overnight. The main trigger was the 10% drop in Broadcom shares, whose earnings forecasts disappointed investors’ high expectations. Mining companies like Hut 8 and Riot recorded losses exceeding 4% in their recent stock valuations due to the current landscape.
In addition to the chip sector, other firms linked to the crypto ecosystem suffered the impact of this widespread bearish trend in the Nasdaq index. Stablecoin issuer Circle plunged more than 5%, while platforms like Robinhood and MicroStrategy retreated nearly 2%. This behavior reflects a direct correlation between digital assets and technological performance in traditional markets during this operating week.
The correlation between technology and crypto assets intensifies
The artificial intelligence narrative, which had driven much of the market gains this year, seems to be losing steam momentarily. Investors are reevaluating their positions amid fears that enthusiasm for AI is cooling following results from Oracle and Broadcom. This situation has generated an atmosphere of caution that directly affects liquidity available for volatile risk assets like Bitcoin.
On the other hand, the macroeconomic scenario adds layers of complexity due to recent statements from various Federal Reserve officials. Although Jerome Powell hinted at a possible pause in rate cuts for January, Goolsbee offered a contrasting view on the long term. Monetary policy expectations remain a determining factor for the stability of the global economy and financial markets.
How will Fed policy affect Bitcoin’s immediate future?
The market now anticipates fewer rate cuts for 2026, adjusting expectations from three to just two reductions following recent comments. However, Goolsbee’s projection of greater aggressiveness in future cuts could offer relief to risk assets if it materializes. Traders will be watching for new signals to confirm or deny the pause suggested for the coming month of January.
Ultimately, the leading cryptocurrency faces a volatile week close marked by dependence on capital flows from the technology sector. If negative sentiment around artificial intelligence persists, we are likely to see more support tests in prices in the short term. Attention will focus on upcoming Fed speeches to define the trend of digital assets.
