Bitcoin News Today: Bitcoin's Plunge Reflects Broader Tech and AI Market Malaise

Bitcoin implodes as volatility from Big Tech, AI bubble fears, spreads to crypto

Bitcoin's price has plummeted below $90,000 for the first time in six months, with analysts attributing the selloff to a broader market malaise and growing concerns over the sustainability of Big Tech and AI-driven investment frenzies. The cryptocurrency, which had reached a peak of $115,000 in late August, has lost over 20% of its value since mid-October, mirroring declines in equities and derivatives markets. The S&P 500 and Dow Jones Industrial Average both fell more than 1% on November 19, 2025, as investors reassessed risk amid weak earnings from financial benchmarks and uncertainty surrounding the AI sector.

The selloff has spilled into traditional financial markets, with Intercontinental Exchange Inc. (ICE) and CME Group Inc. (CME) among the hardest-hit. ICE shares dropped 1.14% on the day, while CME fell 2.07%, snapping a nine-day winning streak. Both exchanges, key players in derivatives trading, underperformed peers such as Nasdaq Inc. and Cboe Global Markets Inc., reflecting investor anxiety over the ripple effects of AI sector volatility. The decline underscores a broader unease: as AI-driven startups and enterprise software firms face scrutiny over overvaluation, the interconnectedness of crypto and tech markets has amplified downside risks.

C3 AI Inc. (AI), a prominent player in enterprise AI, exemplifies these challenges. The company reported a 19% year-over-year revenue drop in its fiscal first quarter, citing leadership transitions and sales reorganization as drag factors. Founder Thomas Siebel, who stepped down as CEO, due to health issues, admitted that 70% of the poor performance stemmed from internal disruptions. Analysts have downgraded C3 AI stock, with some labeling it a "high-risk investment," while short-sellers have faced mounting risks as valuation contractions and speculative acquisition rumors create a volatile environment.

The turbulence has prompted new tools for gauging crypto volatility. On December 2, CME Group and CF Benchmarks will launch the CME CF Bitcoin Volatility Indices (BVX and BVXS), providing real-time and settlement-based measures of expected price swings. The indices, derived from options on Bitcoin futures, aim to help institutional investors navigate a market increasingly characterized by sharp corrections. "As crypto matures, sophisticated tools like these are critical for managing risk," said Giovanni Vicioso, CME Group's global head of cryptocurrency products.

Despite the selloff, some analysts argue that Bitcoin's core value proposition remains intact. Bitwise Asset Management noted that Bitcoin's appeal lies in its role as a decentralized, digitally native store of value-a function akin to Microsoft's dominance in cloud computing but without centralized control. "As long as demand for non-sovereign wealth preservation grows, Bitcoin's value will persist," said the firm, even as prices fluctuate.

Policy developments, however, offer a glimmer of optimism. The Bitcoin Policy Institute endorsed the Bitcoin for America Act, which would allow tax payments in Bitcoin and establish a Strategic Bitcoin Reserve. Proponents argue the legislation could stabilize demand by institutionalizing Bitcoin's role in the U.S. financial system.