The crypto market slipped Thursday even as the Dow Jones Industrial Average hit a new record high, highlighting a sharp rotation of investors out of technology and into economically sensitive stocks following the Federal Reserve’s latest interest rate cut.
Summary
- Crypto slumped even as the Dow hit a record high, with Bitcoin and Ethereum falling alongside a broad sell-off.
- Investors pulled out of big tech and AI plays after weak Oracle earnings.
- Despite the price decline, Bitcoin and Ethereum ETFs saw strong inflows, signaling sustained institutional interest.
Bitcoin hovered just above $91,000, down about 1.5%, while Ethereum slipped about 5% to trade near $3,200.
These declines reflect a broader sell-off in digital assets: the total crypto market capitalization fell 2.3% to around $3.2 trillion. A report states that 97 of the top 100 tokens are trading lower.
Despite the crisis, Bitcoin and Ethereum ETFs still attracted new inflows, signaling continued institutional appetite. According to data collected on Thursday, December 10:
- Spot Bitcoin ETFs Generated Net Inflows Worth $224 Million
- Ethereum ETFs saw a net inflow of $57.6 million
- Spot XRP ETFs have attracted $954 million in investment since Canary Capital launched in November.
Traditional markets tell a different story
The 30-stock Dow jumped 600 points, or 1.3%. According to CNBC, this is a record.
Investors fled high-growth tech names after Oracle’s disappointing results, raising alarms about how quickly companies can monetize their massive investments in artificial intelligence (AI).
Oracle has more than $100 billion in debt tied to data center expansion, a point that has weighed heavily on sentiment and dragged down other AI-related stocks: Nvidia, Broadcom, AMD and CoreWeave, to name a few.
The rotation dampened momentum from the previous session, when the S&P 500 closed just below its own record high after the Fed cut interest rates for the third time this year, dropping the benchmark range to between 3.5% and 3.75% and signaling that there would be no hikes ahead.
Lower borrowing costs boosted small caps, propelling the Russell 2000 index (up 1.3% at last check) to a new intraday high on Thursday, after hitting a closing record the day before.
In crypto, sentiment remains fragile: the Cryptocurrency Fear and Greed Index rose from 30 to 29, remaining firmly in “fear” territory ahead of further macroeconomic signals and government actions following recent administrative disruptions.
What’s next
Even with the growing uncertainty, ETF inflows suggest that large investors are not leaving crypto, simply preparing for a rougher ride.
It remains to be seen whether a so-called Santa rally can push the S&P 500 above 7,000 by the end of the year. As for 2026, observers expect various headwinds, including a change in Fed leadership and the midterm elections.
