Analysis: Bitcoin falls back to $74,000, AI stock sell-off drags down the crypto market

Affected by the weakness in tech stocks, Bitcoin fell below $74,000 during the early trading session in the U.S. The Nasdaq 100 index dropped by 1%, as concerns grew that AI could have disruptive effects, with the iShares Expanded Tech-Software ETF (IGV) declining by 17% over the past week. Shares of crypto mining companies related to AI infrastructure development also fell, with Cipher Mining (CIFR), IREN, and Hut 8 (HUT) all dropping more than 10%.

This decline was triggered by chipmaker AMD's 2026 earnings outlook falling short of analysts' expectations, leading to a 14% drop in its stock price. Additionally, gold also faced selling pressure, retreating from a high of $5,113 per ounce to below $5,000. In terms of economic data, the U.S. January ISM Services PMI was at 53.8, indicating continued expansion in the services sector. However, according to the ADP report, private sector job growth slowed, adding only 22,000 jobs. Quinn Thompson, Chief Information Officer at Lekker Capital, noted that there is a trend of job weakness in manufacturing, professional and business services, and among large employers, and believes the market is underestimating the scale of stimulus measures that the Federal Reserve may introduce in 2026.