Crypto Markets Sink Deeper as AI Fears Hammer IBM Shares 11%

Markets tumbled Monday as fresh evidence of artificial intelligence encroaching on legacy revenue streams rattled investors across equities and crypto.

The latest catalyst came from Anthropic, which said its Claude platform can significantly accelerate the modernization of COBOL systems — a niche that has long generated steady consulting income for IBM.

COBOL, or Common Business-Oriented Language, remains deeply embedded in global infrastructure. Anthropic estimates the language processes roughly 95% of ATM transactions in the United States, with hundreds of billions of lines of code still running mission-critical systems across banking, airlines, and government agencies.

But maintaining and upgrading those systems has grown increasingly complex. Many original COBOL engineers have retired, and only a limited number of universities continue to teach the language. Traditionally, modernization efforts have required large teams of consultants spending years mapping workflows and dependencies — work that has supported IBM’s enterprise services business.

Anthropic argues that Claude Code can automate much of the discovery and analysis phase that historically consumed the bulk of time and cost in these projects. The implication that AI could compress or replace consulting-heavy engagements sparked an immediate reaction in IBM shares, which were down 11.2% shortly before the close.

The weakness extended beyond a single name. Broader anxiety over AI-driven disruption in software and private equity weighed on major benchmarks, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each falling more than 1%.

Market observers highlighted the speed of structural change underway. The Kobeissi Letter described the current environment as a pivotal moment, as AI tools increasingly challenge established business models.

Cryptocurrencies, which have shown a strong correlation with high-growth tech stocks in recent months, also faced heavy selling. Bitcoin fell 5% over the past 24 hours to $64,000. Ethereum and Solana posted similar declines, leaving many major tokens within striking distance of their Feb. 5 panic lows.

Crypto-related equities mirrored the downturn. Coinbase, MicroStrategy (MSTR), Circle, and Galaxy Digital fell between 4% and 7%.

One pocket of strength emerged among bitcoin miners expanding into AI infrastructure. IREN rose 5%, Cipher Mining gained 3.4%, CleanSpark advanced 1.5%, and Hut 8 added 0.7%.

Meanwhile, investors rotated into traditional safe havens. Gold climbed 3.2% to $5,243 per ounce, while silver surged 6.5% to $87.69, underscoring a broader risk-off tone as AI-driven disruption reverberated through financial markets.