Bitcoin drops to $74,000, staying cautious amid tech sector turbulence from AI concerns.

AI infrastructure stocks, including HUT 8, IREN, and Cipher Mining, plunged as chipmaker AMD sank 14% following weaker-than-expected fourth-quarter results.

Bitcoin (BTC $68,561.87) slipped back below $74,000 early in the U.S. session, erasing gains from Tuesday as weakness in tech shares pressured the broader crypto market.

The Nasdaq 100 fell 1% after a 1.5% decline the day prior, with the software sector continuing its slide. The iShares Expanded Tech-Software ETF (IGV) dropped another 4%, down 17% over just more than a week, amid mounting concerns that AI developments could be highly disruptive.

Crypto miners, increasingly linked to AI infrastructure, mirrored the tech selloff. Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all fell more than 10% as AMD’s disappointing outlook rippled through the sector.

Gold also reversed course, giving back an overnight gain that briefly pushed it to $5,113 per ounce, slipping back below $5,000.

Mixed U.S. economic signals

The ISM Services PMI for January held steady at 53.8, matching December’s revised reading and slightly surpassing expectations, signaling continued expansion in the services sector.

However, private job growth slowed sharply, with ADP reporting just 22,000 new jobs—well below forecasts of 48,000 and December’s already soft 37,000. The official January jobs report, normally scheduled for this Friday, has been delayed until next week due to the brief government shutdown.

“Manufacturing has shed jobs every month since March 2024’s Main Street recession, and now professional services and large employers are showing weakness,” said Lekker Capital CIO Quinn Thompson. He added that markets may be underestimating the amount of Federal Reserve stimulus that could arrive in 2026.

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