Bitcoin Dropped Below $90K And Honestly, AI Had More To Do With It Than Bitcoin

[Mr:Gabby]

The crazy part about this whole dip is that nothing major actually happened inside the Bitcoin world. No big hack. No major regulation. No panic from miners.

What really shook things up was something completely different: AI fears.

And this is where it gets interesting.

1. Investors got scared of AI… and everything risky fell with it

Some big tech companies dropped warnings about AI spending, profits, and regulations.
That was all it took.

When big investors panic like that, they don’t think twice  they just start pulling money out of anything they consider “risky.”
And yes, Bitcoin is always on that list.

So this dip wasn’t really about Bitcoin.
It was about fear.

2. Bitcoin still moves like a tech asset

We love to say Bitcoin is “uncorrelated,” but days like this prove the opposite.
Whenever tech stocks shake, Bitcoin wobbles too.

It’s not because BTC is weak it’s because the same investors who buy tech stocks also buy Bitcoin.
When they get nervous, they sell everything at once.

Simple as that.

3. Analysts lowered targets, and that made people even more nervous

As soon as the dip started, some analysts rushed in and cut their price predictions for the year.
That alone made retail traders panic even more.

It’s the usual cycle:
fear → sell → more fear → more sell.

4. Nothing about Bitcoin’s fundamentals changed

This is the part people miss.

Bitcoin didn’t crash because something is wrong with Bitcoin.
It dipped because the entire global market went into “play it safe” mode.

And when that happens, Bitcoin always gets dragged along.

My honest Contribution to this terrible Trauma

This was not a Bitcoin problem.
It was a market mood problem.

AI is shaking up everything right now jobs, companies, regulations, even how people invest.
So when bad AI news drops, people get scared, and Bitcoin takes a hit even though it didn’t do anything.

But dips like this usually don’t last long.
Once investors calm down, they come back.

[BIT-BENDER]

Stop this Ai conspiracy theory. Ai had nothing to do with Bitcoin going below $90k I don't understand how you think the fear of AI correlate with the price of Bitcoin dropping below $90k
Funny theories like this should stay in your mind because it doesn't add up, Bitcoin market has been volatile even before the fear of AI.

[Mpamaegbu]

OP, I don't know how long you've been in this industry as I ain't going to judge you by your newbie rank here. If you had been in this industry long enough to witness one full circle, you would've realized that whatever that's happening now with Bitcoin price isn't anything to do with any Ai. It's pure market dynamics and price correction. Nothing goes up forever. Price has to seek support to spring up to break resistance points. Demand and supply, whichever way you look at it, are what we should be holding responsible for price action.

[treesintheforestooh]

Stop this Ai conspiracy theory. Ai had nothing to do with Bitcoin going below $90k I don't understand how you think the fear of AI correlate with the price of Bitcoin dropping below $90k
Funny theories like this should stay in your mind because it doesn't add up, Bitcoin market has been volatile even before the fear of AI.

I think where and how it does have relevance is mining farms pivoting and turning operations towards AI compute.

- https://cointelegraph.com/news/bitfarms-plunges-18-after-plan-wind-down-bitcoin-mining-ops

- https://news.bitcoin.com/bitcoin-miner-terawulf-secures-25-year-ai-compute-contract-worth-9-5b/

Those are just two quick examples. There are more from what I've seen.

The economics become tough for mining operators, large and small, when fiat value drops and transactions are stagnant.

This Substack article, written fairly recently, is well done and gives a good summary of everything on the topic.

[coinrifft]

OP, I don't know how long you've been in this industry as I ain't going to judge you by your newbie rank here. If you had been in this industry long enough to witness one full circle, you would've realized that whatever that's happening now with Bitcoin price isn't anything to do with any Ai. It's pure market dynamics and price correction. Nothing goes up forever. Price has to seek support to spring up to break resistance points. Demand and supply, whichever way you look at it, are what we should be holding responsible for price action.

I do agree, since I also studying Bitcoin, it's more of the fundamentals that really push or draw back the price of Bitcoin. And going on the narratives of the OP, if there is a bad news on AI, then it's not only Bitcoin that is going to be affected, it's the whole financial market. The only thing I heard about news on AI that can really affect Bitcoin is that it is being used by cyber criminals to create malware/trojan to steal someone's crypto. It could be huge though but I don't think it's enough for investors to lost their confidence in the market. Crypto investors are more intelligent than seeing bad AI news and then pulling their investments.

[PrivacyG]

The crazy part about this whole dip is that nothing major actually happened inside the Bitcoin world. No big hack. No major regulation. No panic from miners.

What really shook things up was something completely different: AI fears.

Or the answer is much more simple and it is all about Bitcoin cycles.  Bitcoin has never gone up continuously for years in a row.  It would not even be healthy for the Market and it would probably make crashes way more brutal.  If you inspect its history, these kind of 'crashes' are absolutely normal and to most of us who have been in the Market for years it would take a LOT of crashing to finally possibly trigger some kind of panic or stress.

Before thinking out of the box, try zooming out and see if this has happened before.  It coincidentally has, every four years.

[Alphakilo]

This is more of just sentimental talks than fact, because a lot of factors had to do with the drop than even AI contributed and we witnessed the drop since October when there was talks of interest rate cut by Donald Trump. It is all a speculation, still it added to the list of volatilities that made the price drop.

The case now is not to panic but still HODL and accumulate according to how you can afford. If possible try to acquire Bitcoins ETF because that's the direction the bitcoin market is currently going in and that's why this dip is necessary for the balance to usher in the bull season which is much expected next year.

[Bitcoin_Arena]

Nonsense!

Can't bitcoin just dip or pump by 2-3% without any news behind it?

You must really be a noob in the crypto markets and so you think some rumor must spread in order for the markets to get shaken up. Stop being gullible and study how crypto markets move.

Now Bitcoin is back up at $92.5K, what are you going to say?

[pooya87]

I agree with some parts of what you said like the drop being mostly because of panic and the market being in "play it safe mode". But I disagree with saying this has anything to do with AI or some dumbasses on the internet who call themselves "analysts" changing their price predictions for the year.

The only reason why bitcoin has had trouble soaring up all this time (pretty much the entire 2025) and the reason why it dropped in November is the terrible situation the global economy is in, specifically the ongoing recession accompanied by inflation.

When the fears of global conflict increases, when the US regime threatens to invade yet another nation to steal its resources (Venezuela to be specific) while threatening global trade routes, when Europe is preparing to spread the armed conflict horizontally, when Eastern Asian countries are preparing for war (Japan just started talking about building nukes) and a lot more... the global economy reacts negatively which means a worsening recession as capital exits the healthy productive economy and enters hard assets like precious metals (look how gold price is soaring).
This is why bitcoin dumps out of fear and the following panic sell turns it into a crash. That is also why the stock market crashed in November as well (roughly 10% from November 2 to 20 which is the same period bitcoin crashed from $110k to $80k).

[JeffBrad12]

No real data to back up the correlation. It could be just the market feeling bearish and that's about it.
This kind of correction happened many times already, Bitcoin went from $125k to $90k is perfectly normal if you think about the gain from january 2023. The market can't just go up forever and that's the answer.

AI and tech stock have entirely different set of problems that is isolated from each other.

[headingnorth]

I think bitcoin hit a psychological ceiling at around $100K+. At such prices many people don't want to buy it anymore
because they think the price (and marketcap) is too high. So part of it is bitcoin simply ran out of steam.

$100K was also a big psychological number for OGs and other long-time holders, most who
started selling heavily when bitcoin hit the big magic number or got near it, which pushed down the price.

There is something called the law of diminishing returns. The bigger the marketcap of something gets,
the more money and buyers it takes to move the price higher, and the slower the price will move up in the future.
At $2 trillion bitcoin is pretty large and comparable in value to many of the companies in the S&P 500.
.
But the law of diminishing returns can sometimes be broken when demand of something greatly exceeds the supply,
even when the marketcap is very large. That is what happened with gold this year. At the beginning of the year 2025
the marketcap of gold was under $20 trillion but by December reached $30 trillion.

That is gain of more than $10 trillion in less than one year, which is pretty incredible.
In terms of marketcap, that may be the largest one-year appreciation of any asset in world history.
Gold seems to have defied the law of diminishing returns.

So why does something so ancient and quaint like gold have such a huge marketcap? Because gold always has huge demand
from the consumer market. It doesn't just depend on people speculating on it. So even if you removed all the speculators
or investors from the gold market, the value of gold would still be in the tens of trillions because there are many sources of
great demand for it other than speculation (central banks, jewelry, industry, etc).

But if you removed all the speculators and investors from bitcoin, it would be worth close to nothing,
since bitcoin is based almost purely on speculation, with no consumer demand. That is not a criticism of bitcoin, it is just a fact.

It doesn't help that bitcoin is restricted or banned in half of the world in countries like China and India.
So you have lost out on billions of potential new investors. It doesn't help when half of the world thinks of bitcoin
as some kind of scam. In contrast gold enjoys the full support of every country on earth and no one thinks of gold as a scam.

I am not trying to fearmonger about bitcoin. You can invest in bitcoin all you want but people should have realistic expectations
and understand the risks and shortcomings. Don't listen to the paid shills and influencers on social media.

In other words, don't fall for the hype. Because honestly bitcoin does run on a great deal of hype.

[ryanmitchell]

Honestly, the whole discussion shows how many different angles people try to use when explaining short-term price moves. But the simplest explanation is usually the right one: Bitcoin didn’t drop because of any single headline AI, mining pivots, analysts, or tech stocks. It dropped because the broader market was already shaky and BTC is still treated like a high-volatility risk asset. When liquidity tightens or uncertainty rises, everything from stocks to crypto gets hit at the same time. Bitcoin wasn’t “targeted” it just reacted to overall market mood like it always does. And now that it’s already pushing back above $92K, this really just looks like another routine correction inside a long-term uptrend. Zoom out and the picture makes a lot more sense than any specific narrative.

[GreatArkansas]

1. Investors got scared of AI… and everything risky fell with it

Some big tech companies dropped warnings about AI spending, profits, and regulations.
That was all it took.

When big investors panic like that, they don’t think twice  they just start pulling money out of anything they consider “risky.”
And yes, Bitcoin is always on that list.

So this dip wasn’t really about Bitcoin.
It was about fear.

I don't think this is the reason for the recent dump, because if you can see the other publicly listed companies' market or let's say the stock market itself, crashed too.
As most speculators said, it is because of the current trade wars of the  United States.
But about AI, even let's say it's all hype or bull related to AI, Bitcoin must have nothing to do with it.