Bitcoin, Ether Steady as AI Fears Send Oracle Tumbling Down, Traders Eye Next Wave of Rate Cuts

Company Insights - Oracle Corp. experienced its largest one-day stock decline in nearly a year, with shares dropping over 11% after revealing a significant increase in capital expenditures related to AI data centers and infrastructure [5][6] - The company's quarterly spending reached approximately $12 billion, exceeding expectations, and it raised its full-year capital expenditure outlook to around $50 billion, a $15 billion increase from its previous forecast [5] - This surge in spending has raised concerns about the timeline for AI investments to translate into meaningful cloud revenue, pushing Oracle's stock to its lowest level since early 2024 and increasing its credit risk to a 16-year high [6] Industry Trends - The broader tech sector sentiment was negatively impacted by Oracle's selloff, particularly affecting AI-linked companies that have driven much of the equity rally this year [7] - The Nasdaq 100 index declined as investors shifted cautiously into other sectors, indicating a growing sensitivity to spending discipline rather than just top-line growth [7] Cryptocurrency Market - Bitcoin traded above $92,000, gaining about 2.6% on the day, stabilizing after a volatile period that saw prices dip toward the low $90,000s [2] - Ether rose alongside Bitcoin, approaching $3,260, while SOL outperformed major cryptocurrencies with a more than 6% increase, reflecting renewed interest in higher-beta layer-1 tokens [4] - XRP and BNB saw smaller gains and remained range-bound as investors awaited clearer signals regarding spot ETF developments and overall market direction [4]