Bitcoin falls to $74,000, navigating defensive territory while AI fears unsettle tech markets.

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

Bitcoin (BTC $68,561.87) fell back below $74,000 early in the U.S. session, erasing gains from Tuesday as tech sector weakness weighed on crypto.

The Nasdaq 100 slid 1% after a 1.5% drop the previous day, with the software sector continuing its selloff. The iShares Expanded Tech-Software ETF (IGV) fell another 4%, down 17% in just over a week amid growing concerns that AI could disrupt the industry.

Crypto miners, closely linked to AI infrastructure, mirrored the decline. Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all fell more than 10%, reflecting the ripple effect from AMD’s disappointing outlook.

Gold reversed course as well, giving back an overnight gain that briefly lifted it to $5,113 per ounce and sliding 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 due Friday, was delayed until next week due to the brief government shutdown.

“Manufacturing has lost 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 potential Fed stimulus in 2026.