In the ever-evolving landscape of technology, each breakthrough in artificial intelligence is reshaping the global capital map. On February 23, a wave of innovation sparked by AI sent shockwaves through traditional financial markets, quickly rippling into the crypto sector. Tech giant IBM saw its stock suffer its largest single-day drop in over twenty years, while Bitcoin tumbled below the $63,000 mark. This raises a pressing question for the market: As public enthusiasm pivots toward AI, is crypto being ruthlessly sidelined by capital?
The Twilight of Blue Chips: Why Did IBM Plunge?
On February 23 (local time), the US stock market faced a harsh downturn, with the Dow Jones Index plummeting more than 800 points. Amid this turmoil, IBM stood out as the most notable casualty. The "Blue Giant," with a century-long legacy, saw its stock drop over 13% intraday, marking its steepest single-day decline since 2000.
The immediate trigger came from a disruptive force in AI. Anthropic’s Claude Code platform demonstrated its capability to modernize COBOL systems automatically. COBOL, a programming language born in the 1950s, still powers roughly 95% of ATM transactions in the US and is integral to many financial, aviation, and government core systems. For years, maintaining and upgrading these "vintage" systems has been one of IBM’s most stable revenue sources, supported by its vast consulting services team. Anthropic’s breakthrough suggests that these complex and costly consulting tasks may soon be partially or fully replaced by efficient AI tools. Investors responded decisively, and IBM’s collapse signaled a new peak in market anxiety over AI’s disruption of traditional business models.
Crypto Market: Collateral Damage
The panic in traditional markets quickly spread to the crypto sector like wildfire. As a representative of risk assets, the crypto market faced intense selling pressure. According to Gate market data, Bitcoin (BTC) briefly fell below $63,000 on February 24, with a 24-hour drop nearing 5%. Ethereum (ETH) followed suit, with prices hovering around $1,800 on Gate, also posting significant losses.
It wasn’t just cryptocurrencies themselves; publicly listed companies closely tied to the crypto industry were not spared. The share prices of Coinbase, Strategy (formerly MicroStrategy), and Galaxy Digital all fell by 4% to 7% during US trading hours. This clearly illustrates that, amid tightening global liquidity and rising risk aversion, anxiety over AI-driven growth models is triggering systemic asset sell-offs—making crypto, as a high-beta asset, the first to bear the brunt.
Capital Migration or Structural Realignment?
With the AI narrative dominating headlines, investors face a sharp question: Is capital fleeing crypto en masse and pouring into AI?
Short-term data does indicate signs of capital outflow. On the same day IBM plunged, traditional safe-haven assets—gold and silver—surged. Spot gold broke above $5,220, while silver futures jumped more than 7%. This suggests that, amid rising uncertainty, some capital opted for age-old safe harbors instead of digital gold.
However, it may be premature to declare crypto marginalized. The market is not entirely bleak; structural opportunities are emerging. Notably, Bitcoin mining companies that pivoted early toward AI infrastructure—such as IREN, Cipher Mining, and CleanSpark—demonstrated remarkable resilience during the recent volatility, even posting slight gains. This shows that crypto and AI are not simply competitors; at the computing power level, the two are deeply intertwined.
Within the crypto market, AI-related sectors remain vibrant. According to SoSoValue data, despite broader market pressure, the AI segment recorded gains of over 2% on February 24, with projects like Worldcoin (WLD) and Fetch.ai (FET) performing impressively. On platforms like Gate, trading activity for AI-themed tokens remains robust, indicating that the market is actively seeking new narratives that combine AI and crypto.
Conclusion
The shift toward AI has indeed siphoned capital from the crypto market in the short term, intensifying volatility and divergence. IBM’s plunge stands as a landmark event, warning us that AI’s disruption of traditional industries is unfolding at unprecedented speed—and the resulting panic indiscriminately impacts all risk assets.
Yet, rather than marking the beginning of crypto’s marginalization, this moment serves as a catalyst for internal restructuring. Tokens that survive solely on hype will be eliminated faster, while projects that truly integrate with the AI narrative—whether by providing decentralized computing power (DePIN), data labeling, or serving as payment networks for AI agents—are nurturing new vitality.
For investors on comprehensive platforms like Gate, it’s essential not only to monitor short-term price swings in mainstream assets like Bitcoin and Ethereum (such as BTC’s current defense near $64,000), but also to focus on the core AI + Crypto sector. After the panic subsides, the best window for strategic investment often emerges. The market hasn’t abandoned crypto; it’s simply applying stricter standards to identify assets that can resonate with the AI era and deliver genuine value.
