Crypto Markets Stable While Oracle Slides on AI Worries, Traders Anticipate Next Fed Moves

U.S. equities fell Thursday after Oracle Corp. reported its largest one-day decline in nearly a year, as heavy AI spending raised fresh concerns over profitability. Traders largely focused on maintaining trend structure, with flows concentrated in large-cap stocks.

Oracle’s AI Spending Hits Shares

Oracle shares plunged more than 11% following a disclosure of sharply higher capital expenditures for AI data centers and infrastructure. Quarterly spending reached roughly $12 billion, well above expectations, while the company raised its full-year capex guidance to about $50 billion — up $15 billion from September.

The move intensified doubts about when AI investments will deliver meaningful cloud revenue, sending Oracle to its lowest level since early 2024 and pushing a measure of its credit risk to a 16-year high. Broader tech sentiment, particularly across AI-linked names that have driven much of this year’s rally, came under pressure, with the Nasdaq 100 slipping as investors rotated cautiously into other sectors.

Crypto Markets Show Selective Strength

Meanwhile, the crypto market traded relatively stably, decoupling modestly from equity weakness as traders remained selective about risk. Bitcoin reclaimed levels above $92,000, up roughly 2.6%, stabilizing after a volatile stretch that briefly pushed prices into the low $90,000s.

Ether followed suit, climbing toward $3,260, while SOL outperformed with a gain of over 6%, reflecting renewed appetite for higher-beta layer-1 tokens. XRP and BNB posted modest gains, staying range-bound as investors awaited clearer signals on spot ETF developments and broader market direction. Dogecoin edged higher but remained lower on a weekly basis, mirroring broader market sentiment rather than token-specific catalysts.

“Major institutions are increasingly divided on the Fed’s next moves,” analysts at Bitunix told CoinDesk. “Some see improving inflation supporting further rate cuts in March, while others anticipate a January pause, a wait-and-see approach through H1, or even a delay until after June.”

The analysts added that the “hawkish cut” highlights the FOMC’s growing difficulty maintaining cohesion under Chair Powell.

Looking Ahead

With markets grappling with a fragmented Fed outlook and mounting scrutiny of AI spending, investors appear positioned to remain tactical. Near-term direction is likely to hinge less on policy signals and more on whether earnings and liquidity can support further risk-taking across equities and crypto.

For now, flows remain concentrated in large-cap equities and top-tier crypto assets, as traders weigh the potential for selective upside against broader macro and corporate spending pressures.