Building on Thursday's post-Fed dip, Bitcoin remained below $90,000 on Friday amid cooling AI hype, with Nasdaq sliding and chip stocks like Broadcom tumbling 10% on weak guidance. Fed speakers added uncertainty on future rate cuts.
Bitcoin extended its weakness on Friday, trading below $90,000 after dipping to $89,800 early in U.S. hours—continuing the volatility seen the prior day following the Federal Reserve's rate cut.
AI-related tech stocks drove the pressure: Broadcom (AVGO) shares plunged 10% despite solid earnings, as its AI growth outlook disappointed investors. Oracle fell another 3% after Thursday's 10% drop, fueling concerns that the AI rally is fading. The Nasdaq dropped over 1%.
Crypto miners with AI exposure followed suit: Hut 8 (HUT) down over 5%, Riot Platforms (RIOT) and Iris Energy (IREN) around 4%, Cipher Mining (CIFR) about 2%. Other crypto equities weakened: Robinhood (HOOD) and MicroStrategy (MSTR) nearly 2% each, Circle down over 5%, Coinbase (COIN) slightly.
Fed commentary weighed in too. Chair Powell's Wednesday remarks hinted at a possible January pause in cuts, with markets now expecting only two in 2026. Chicago Fed's Austan Goolsbee signaled more cuts ahead despite prior opposition to December's move. Traders eyed further speeches post-December blackout.
