AI Tax Tool Sparks 11% LPL Plunge, Crypto Markets Brace for Contagion

VADODARA, February 10, 2026 — Artificial intelligence triggered a 10.59% collapse in LPL Financial shares Tuesday. This latest crypto news reveals systemic risk spreading from software to financial services. Altruist's Hazel AI platform launched a tax planning tool that reads client documents in minutes. Market structure suggests traditional finance disruption now threatens crypto liquidity cycles.

Investigation: AI Disruption Hits Financial Advisory Core

According to CNBC market data, LPL Financial Holdings Inc plunged $41.65 to $351.60 on NASDAQ. Charles Schwab dropped over 9%. Raymond James Financial mirrored the decline. Morgan Stanley fell 4%. The iShares U.S. Broker-Dealers and Securities ETF dropped 4% in single session.

Altruist's Hazel AI platform announced the disruptive offering. The tool processes 1040s, paystubs, account statements, and CRM data. It applies deep tax logic to create personalized strategies. This automation threatens traditional advisor revenue models. Consequently, investors dumped broker stocks en masse.

Market Context & Historical Precedent

This pattern mirrors earlier 2026 software sector collapse. Anthropic's AI model triggered similar disruption. The iShares Expanded Tech-Software ETF (IGV) dropped 19% year-to-date. ServiceNow and LegalZoom shares cratered. Historically, technology disruption follows predictable contagion paths.

Traditional finance panic often precedes crypto market volatility. The 2023 banking crisis saw Bitcoin surge as hedge. However, current sentiment suggests different dynamics. Extreme Fear scores at 9/100 indicate systemic risk aversion. Market analysts watch for correlation breakdown between asset classes.

Related developments include recent Federal Reserve signals affecting crypto liquidity and regulatory structure changes at the CFTC.

Technical Architecture & Price Action

On-chain data indicates crypto markets testing critical levels. Bitcoin currently trades at $68,878, down 2.22% in 24 hours. The Fibonacci 0.618 retracement from 2025 highs sits at $67,200. This represents major support confluence.

Volume profile shows distribution above $70,000. Relative Strength Index (RSI) approaches oversold territory at 38. The 50-day moving average provides dynamic resistance at $71,500. Market structure suggests liquidity grab below key psychological levels.

Ethereum's EIP-4844 implementation faces similar pressure. Gas fees dropped 42% post-upgrade. However, network activity shows declining smart contract deployments. This indicates broader risk-off sentiment across digital assets.

By The Numbers

Why It Matters

Financial advisory represents $7.2 trillion in managed assets. AI disruption threatens 30-40% of traditional revenue streams. This creates capital flight risk into alternative assets. However, extreme fear sentiment currently suppresses crypto inflows.

Institutional liquidity cycles depend on traditional finance stability. The SEC's regulatory framework increasingly connects both markets. Consequently, broker stock collapses create contagion channels. Retail market structure shows increased correlation during panic events.

Market analysts monitor UTXO age bands for early warning signals. Older Bitcoin holdings show increased movement during traditional market stress. This indicates hedge positioning versus outright risk-off behavior.

Expert Commentary

"AI disruption follows predictable economic patterns. First software, now financial services. Crypto markets face dual pressures: traditional finance contagion and internal structural tests. The critical level remains Bitcoin's $67,200 Fibonacci support. Break that, and we see cascading liquidations."— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $71,500 (50-day moving average). Breaking this resistance confirms traditional finance panic isolated. It suggests crypto decoupling and renewed institutional interest.
• Bearish Invalidation Level: $67,200 (Fibonacci 0.618 support). Losing this level validates contagion spreading. It triggers algorithmic selling and potential gamma squeeze below $65,000.

The 12-month institutional outlook depends on correlation persistence. If AI disruption remains sector-specific, crypto benefits from capital rotation. However, broad financial system stress creates headwinds. The 5-year horizon still favors digital asset adoption despite short-term volatility.