Bitcoin erased earlier gains and slipped back toward the $65,000 level as weakness in U.S. stock futures and concerns about artificial intelligence disrupted risk appetite.
Market commentator Walter Bloomberg noted that crypto tracked equities lower as investors reacted to growing fears about AI’s impact on business models and long-term tech investment returns. With technology stocks leading expected monthly losses, digital assets followed the same risk-off tone.
Over the past 24 hours, Bitcoin has dropped 2.34% to $65,847.31. Just a day earlier, it was trading around $68,220.
Key Points
- Bitcoin slid toward $65K, shedding gains as AI fears and a tech rout hit risk assets.
- Crypto tracked U.S. equities lower as investors reassessed AI’s impact on profits and jobs.
- Jack Dorsey’s Block layoffs highlighted AI’s structural shift across tech sectors.
- BTC is down nearly 48% from its $126K peak, eyeing its longest losing streak since 2018.
AI Anxiety Spreads Across Markets
The current weakness comes as Wall Street grapples with what analysts are calling the “AI scare trade”. According to a recent Bloomberg report, investor sentiment has shifted from viewing AI as a productivity booster to a threat to entire industries.
The scare trade reflects two core fears. First, major tech firms are overspending on AI infrastructure and data centers without guaranteed returns. Second, AI tools could displace white-collar workers, shrinking payrolls and reducing consumer spending.
These concerns have triggered rolling selloffs across sectors once considered insulated from AI disruption, including software, professional services, and even travel booking platforms. Although broader indexes have remained relatively flat this year, AI-linked stocks have experienced sharp corrections.
Jack Dorsey Announces Major Block Layoffs
Adding to the uneasy mood, Jack Dorsey announced that Block will reduce its workforce by nearly half, cutting over 4,000 roles and bringing total headcount to just under 6,000 employees.
In a detailed note to staff, Dorsey said the company is not in financial trouble. Instead, he pointed to rapid advancements in internal intelligence tools as reasons for restructuring. He emphasized that the decision was made to avoid prolonged uncertainty and multiple rounds of layoffs.
The move confirms that AI is no longer just a growth story, but a structural force reshaping corporate strategy. So, investors are reassessing what that transformation means for long-term earnings across sectors.
Bitcoin Faces Longest Losing Streak Since 2018
Bitcoin’s latest decline extends an overall downturn. The asset has fallen from its all-time high above $126,000 to roughly $60,000, marking a 48% correction over four months. If February closes in the red, it would mark the fifth consecutive monthly loss, a streak not seen since 2018.
Analysts say the pressure on Bitcoin is macro-driven rather than crypto-specific. Ongoing trade tensions tied to President Donald Trump’s tariff policies, regulatory delays, and AI-related volatility have combined to weaken sentiment.
As one digital asset executive recently explained, cryptocurrencies often act as a leading indicator of shifting investor risk appetite due to their 24/7 trading and embedded leverage.
Risk-Off Mood Persists
While 2025 was largely defined by pro-crypto momentum and expanding institutional adoption, early 2026 has brought a more cautious tone. The AI boom that once powered tech valuations is now fueling concerns about disruption and capital misallocation.
As long as AI fears, trade tensions, and volatility dominate headlines, crypto markets may continue to mirror the wider risk-off environment.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.