Tariff Variables and AI Impact: US Stocks Drop, Bitcoin Falls to 63K

U.S. stocks broadly decline as concerns grow over the disruptive risks that artificial intelligence (AI) may pose to industries. At the same time, significant adjustments to U.S. trade tariffs have heightened overall economic uncertainty, further triggering risk-off sentiment in the market. Bitcoin’s decline continues, trading above 64K before press time, with the Fear and Greed Index remaining in “Extreme Fear.”

Tariff uncertainties and AI impacts drive U.S. stock declines

The S&P 500 index drops over 1%, with technology, logistics, and payment stocks under pressure. Previously, Citrini Research outlined the potential risks AI could bring to various industries. IBM’s stock plummeted 13%, marking its largest single-day decline since October 2000, after Anthropic announced that its Claude Code can help adapt COBOL—a programming language primarily used on IBM computers—to modern needs.

(AI too successful? Economic crisis forecasted for 2028: unemployment exceeds 10%, S&P drops 38%)

Growing concerns over AI’s disruptive potential have led traders to sell stocks of companies perceived as vulnerable to displacement. Despite strong earnings from major tech firms, skepticism remains about whether the massive investments in this technology will yield quick returns, intensifying these worries.

U.S. tariff issues have worsened market sentiment. After the Supreme Court rejected President Trump’s reciprocal tariffs on Friday, the White House announced plans to replace the previous tariffs with a comprehensive 15% tariff on imported goods. This uncertainty has caused the EU to suspend approval processes for U.S.-EU trade agreements.

Cryptocurrency market in extreme fear, Bitcoin drops to 63K

Bitcoin continued its weakness from yesterday, briefly falling to $63,888 last night, the lowest since hitting $60,000 on February 6. Bitcoin spot ETFs have experienced net outflows for the fifth consecutive week. Despite retail investors remaining cautious, according to the latest CFTC Commitment of Traders (COT) report, non-commercial traders—including hedge funds and large institutions—in Bitcoin futures traded on CME have significantly reduced their net short positions, shifting toward a more bullish stance.

(Breaking below 65K! Market risk aversion intensifies, 10x Research predicts support only around 50K)

The overall crypto market cap declined 3.38% yesterday to $2.23 trillion, mainly due to liquidation chain reactions triggered by macroeconomic factors. The Fear and Greed Index remains in “Extreme Fear.”

Market will continue to monitor tariff developments and NVIDIA’s earnings report scheduled for February 25, Eastern Time.

This article, “Tariff Uncertainty and AI Impact: U.S. Stocks Drop, Bitcoin Falls to 63K,” first appeared on Chain News ABMedia.