Crypto
Bitcoin Holds Firm as AI Sector Crashes Amidst Heavy Investment
The AI sector is experiencing a downturn, with stocks like the Mag 7 ETF and Korea's KOSPI crashing due to heavy investment without matching cash flow.
Bitcoin, on the other hand, has held steady near $64K through the Fed decision and is up 9% this month. The difference in performance between crypto and equities comes down to leverage and timing.
Crypto took its pain early, pricing in the downturn months ago, while equities are only now being forced to deleverage.
The SEC's backing for the CLARITY Act is also providing a structural tailwind for crypto, laying the groundwork for a potential rebound.