In the early hours of U.S. trading on Wednesday, a notable rally in the cryptocurrency market that had begun earlier in the week lost momentum as technology stocks faced headwinds from a disappointing report regarding artificial intelligence (AI). According to a report by The Information, Microsoft has decided to reduce sales quotas for its AI software, citing a slower than anticipated adoption rate among customers.
The tech giant’s decision stems from its revised outlook on upcoming AI products, specifically “agents.” Microsoft has reportedly adjusted its expectations for these products due to missed growth targets in 2025, leading to a broader reduction in sales goals across multiple divisions, including its Azure cloud services. This news echoed the earlier announcement from OpenAI, which also lowered its revenue projections for AI agents in the coming years.
The immediate impact on the market was significant. Microsoft’s stock fell nearly 3%, dragging the Nasdaq 100 index down from a gain of approximately 0.5% to a 0.5% decline. The downward trend was mirrored in the cryptocurrency market, where prices have recently shown a close correlation with technology stocks. Bitcoin, which had been trading above $93,000 overnight, immediately dropped to $91,800 before stabilizing around $92,300—still reflecting a 3.3% increase over the past 24 hours. Ethereum (ETH) also saw a slip, decreasing by 1.8% from its session high while maintaining a value above the $3,000 mark.
In terms of Bitcoin mining stocks during pre-market trading, the reactions were relatively muted. Iren (IREN) saw a decline of around 2%, while both Cipher Mining (CIFR) and Core Scientific (CORZ) dipped approximately 1%. Conversely, TeraWulf (WULF) managed to hold steady without any significant shifts.
On the flip side, some crypto-related equities performed positively. MicroStrategy (MSTR) experienced a gain of roughly 2%, while Coinbase (COIN) also saw an uptick of 1%. Additionally, newer market entrants such as Circle (CRCL) and eToro (ETOR) benefited from the situation, rising by 2% and 3%, respectively.
As the day progresses, market participants and analysts will be watching closely to see how these developments unfold and what implications they may have for both technology and cryptocurrency markets in the future.
