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Cryptocurrency experiences further downturns as concerns over AI contribute to an 11% drop in IBM’s stock.
Artificial intelligence firm Anthropic has revealed that its Claude platform can facilitate the modernization of COBOL code, which is a significant revenue source for IBM.
AI fears send prices plunging again (Eva Blue/Unsplash)
What to know:
- Anthropic disclosed that its Claude Code can facilitate COBOL modernization, leading to an 11% decrease in IBM’s stock, which has become another casualty of AI-related threats to business models.
- Cryptocurrency values declined alongside the major indices and software sector, with bitcoin retreating to $64,000.
The ongoing disruption of business models due to advancements in artificial intelligence persisted on Monday, resulting in a sharp decline in stock market indices and cryptocurrency valuations.
Today’s casualty (in addition to the usual suspects) was IBM after Anthropic announced that Claude code can automate COBOL modernization.
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"COBOL [Common Business-Oriented Language] is ubiquitous," stated Anthropic. "It is responsible for approximately 95% of ATM transactions in the United States. Hundreds of billions of lines of COBOL are operational daily, supporting essential systems in finance, aviation, and government."
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"The developers who created these systems retired years ago, taking their institutional knowledge with them," the company added. "We are not exactly producing replacements—COBOL is only taught at a limited number of universities, and it becomes increasingly difficult to find engineers who can interpret it each quarter."
"Modernizing a COBOL system used to necessitate large teams of consultants working for years to map out workflows," Anthropic noted. "Tools like Claude Code can automate the exploration and analysis stages that typically consume the majority of effort in COBOL modernization."
Consider the “large teams of consultants” as IBM, and it is easy to understand the stock’s reaction. Just under an hour before the market closed, IBM was down by 11.2%.
IBM’s decline, along with the increasingly regular AI-related drops in the overall software sector and private equity, has contributed to a decline of over 1% in the Dow, S&P 500, and Nasdaq.
"It’s becoming increasingly evident how crucial the current period truly is," stated The Kobeissi Letter.
Closely tied in recent months to movements in software, cryptocurrency prices faced substantial pressure on Monday, with many major coins now nearing their lows from the panic on February 5.
Bitcoin was down 5% over the last 24 hours, settling at $64,100, while ether (ETH) and solana (SOL) also experienced similar declines.
Coinbase (COIN), Strategy (MSTR), Circle (CRCL), and Galaxy Digital (GLXY) all fell between 4% and 7%.
The only stocks showing gains were those bitcoin miners now operating AI infrastructure business models, with IREN (IREN) rising 5%, Cipher Mining (CIFR) increasing by 3.4%, CleanSpark (CLSK) up 1.5%, and Hut 8 (HUT) gaining 0.7%.
