Bitcoin falls back to $74,000, remaining on defense as AI jitters shake tech sector

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Bitcoin falls back to $74,000, remaining on defense as AI jitters shake tech sector

AI infrastructure stocks like HUT 8, IREN, and Cipher Mining are plunging as AMD sinks 14% following fourth quarter results.

By Krisztian Sandor, James Van Straten|Edited by Stephen Alpher

Feb 4, 2026, 3:48 p.m.

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Bitcoin price on Feb. 4 (CoinDesk)

What to know:

• Bitcoin slid back below $74,000 as a renewed sell-off in technology stocks, particularly software names, weighed on the crypto market.
• Crypto miners tied to AI infrastructure, including Cipher Mining, IREN and Hut 8, dropped more than 10% after AMD sank 14% on a disappointing forecast.
• U.S. data showed a mixed economic picture, but one analyst suggested markets are underestimating the amount of Fed stimulus coming in 2026.

Bitcoin BTC$76,073.52 fell back below $74,000 in the early innings of the U.S. session, with the bounce from Tuesday's lows quickly fading away as weakness in tech stocks weighed on crypto.

The Nasdaq 100 was 1% lower following the previous day's 1.5% decline. The software sector continued its tumble, with the thematic iShares Expanded Tech-Software ETF (IGV) declining another 4%, now down 17% in a little over a week, amid fears that AI will be severely disruptive.

STORY CONTINUES BELOW

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Crypto miners, increasingly tied to the buildout of AI infrastructure, mirrored the slide, with Cipher Mining (CIFR), IREN, and Hut 8 (HUT) falling by more than 10%. The declines stemmed from chipmaker AMD, which fell 14% after its 2026 outlook missed analysts' expectations.

Gold was also caught in the selling, with the yellow metal quickly reversing an overnight surge to $5,113 per ounce and sliding back below $5,000.

U.S. economic data is mixed

The ISM Services PMI for January held steady at 53.8, matching December’s revised reading and beating expectations by a hair, pointing to continued expansion in the services sector.

However, private job growth slowed sharply, with just 22,000 jobs added according to an ADP report, well below forecasts for 48,000 and December's already weak 37,000. The government's January job report would normally have been released this Friday, but the short government shutdown has delayed it until next week.

"Manufacturing has lost jobs every month since March 2024 (Main Street recession) but this month professional and business services and large employers joined the weakness," said Lekker Capital CIO Quinn Thompson, who believes markets are underestimating the amount of Fed stimulus that may be coming in 2026.

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