Asia’s AI trade is breaking down today. The KOSPI closed down 5.46% (it was down 7% intraday, triggering a sidecar), SK hynix fell 10%, Samsung 7%, and Japan’s Kioxia 13%. The catalyst: China’s CXMT promised new server DRAM, and the market got spooked that the memory shortage could come to an end.
Meanwhile, $BTC dipped below 81k overnight and climbed back above 83k. Not that it’s getting any help: spot ETFs saw outflows of around 681$ million last week, the biggest outflow since June. 30-year Treasuries touched 5.73% on October 7, their highest level since 2002. Oil is expensive, and CPI is out tomorrow.
My take: Bitcoin holding 81k while chips are down 10% is the first sign that crypto is no longer just a proxy for the Nasdaq. But this is a bounce, not a reversal. A hot CPI print, and 80k will be tested quickly; a soft one, and 84.5k is back in play.
Question: if the AI bubble deflates, where will that money go — into $BTC or into cash earning 5%?
#Bitcoin #CPI
Meanwhile, $BTC dipped below 81k overnight and climbed back above 83k. Not that it’s getting any help: spot ETFs saw outflows of around 681$ million last week, the biggest outflow since June. 30-year Treasuries touched 5.73% on October 7, their highest level since 2002. Oil is expensive, and CPI is out tomorrow.
My take: Bitcoin holding 81k while chips are down 10% is the first sign that crypto is no longer just a proxy for the Nasdaq. But this is a bounce, not a reversal. A hot CPI print, and 80k will be tested quickly; a soft one, and 84.5k is back in play.
Question: if the AI bubble deflates, where will that money go — into $BTC or into cash earning 5%?
#Bitcoin #CPI