On Tuesday, Bitcoin saw a pullback while crypto-related stocks saw a decline.
Arm announced a move to in-house AI chip production while Jamie Dimon warned about AI-driven job losses in the US.
Bitcoin slips amid risk-off sentiment
Bitcoin drifted lower on Tuesday, slipping back toward the $69,000 level as broader weakness in equities spilled over into crypto markets.
After trading near $71,000 earlier in the session, the token fell to around $69,400 at the time of writing.
Other major cryptocurrencies, including Ethereum, Solana, and XRP, also declined between 2% and 3% over the past 24 hours.
Despite the short-term weakness, Bitcoin’s longer-term dynamics have drawn attention.
The correlation between Bitcoin and gold has dropped to nearly -0.9, a three-year low, indicating the two assets are moving in opposite directions.
Historically, such divergence has coincided with major Bitcoin bottoms.
Analysts also pointed to increasing whale accumulation and technical support above short-term moving averages as signs that the bearish phase may be nearing an end.
Circle stock plunges on regulatory fears
Shares of Circle fell sharply, marking their steepest decline on record as investors reacted to potential changes in US stablecoin regulation.
The stock dropped as much as 25%, leading the losses across crypto-linked equities.
Coinbase also declined, falling as much as 11%, while other firms, including MARA Holdings, Bullish, Galaxy Digital, and Robinhood, moved lower.
The selloff was driven by concerns surrounding the proposed Clarity Act, which could restrict rewards on stablecoin holdings.
The legislation may prevent exchanges from offering incentives on tokens such as USDC, weakening a key driver of user adoption.
Competition is also intensifying.
Tether announced it had engaged a Big Four accounting firm for a full audit, fueling speculation about a potential expansion into the US market.
Arm pivots to in-house AI chip production
Arm Holdings announced plans to design and sell its first in-house silicon product, marking a significant shift from its traditional licensing model.
The new processor, called the AGI CPU, is aimed at powering artificial intelligence workloads in data centres and could open a multi-billion-dollar revenue opportunity.
Chief executive Rene Haas described the move as a pivotal moment for the company.
ARM has historically licensed chip designs to firms such as Qualcomm and Nvidia, but the new strategy brings it into more direct competition with its own customers.
The chip is designed for advanced AI applications, including autonomous AI agents, and features up to 136 cores.
Manufacturing will be handled by TSMC using advanced 3-nanometre technology.
Major technology firms, including Meta and OpenAI, are backing the initiative, highlighting strong industry support.
Jamie Dimon warns of AI-driven job losses
Jamie Dimon warned that artificial intelligence could lead to significant job losses in the US, urging collaboration between government and businesses to mitigate the impact.
“[If] all of a sudden it creates unemployment, that’s a big problem for society,” Dimon said during a panel discussion at the Hill and Valley Forum in Washington.
He added that businesses must play a role in retraining workers, while governments could introduce incentives to support workforce transitions.
“It’s coming, it’s going to come quickly,” Dimon said, warning that AI-driven disruption could unfold faster than previous technological shifts.
The comments come as policymakers increasingly focus on the potential labour market impact of AI, with proposals emerging in Washington to track and manage job displacement.
The post Evening digest: Bitcoin dips, Jamie Dimon warns on AI job risks appeared first on Invezz
