Analysis: Bitcoin Drops to $74,000, AI Stock Sell-off Weighs on Crypto Market

Odaily According to news, influenced by weak tech stocks, Bitcoin fell below $74,000 in early US trading hours. The Nasdaq 100 Index dropped 1%, and the iShares Expanded Tech-Software ETF (IGV) has declined 17% over the past week or more due to market concerns about AI's disruptive impact. Stock prices of crypto mining companies related to AI infrastructure development also fell, with Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all dropping over 10%. This decline stemmed from chipmaker AMD's 2026 performance outlook falling short of analyst expectations, leading to a 14% drop in its stock price.

Additionally, gold also faced selling pressure, with its price retreating from a high of $5,113 per ounce to below $5,000. Regarding economic data, the US January ISM Services PMI came in at 53.8, indicating continued expansion in the service sector. However, according to the ADP report, private sector job growth slowed, adding only 22,000 positions. Quinn Thompson, Chief Investment Officer at Lekker Capital, noted a trend of employment weakness in manufacturing, professional and business services, and among large employers. He believes the market is underestimating the potential scale of stimulus measures the Federal Reserve could introduce in 2026. (CoinDesk)