$SOPH$AMZN The cloud giants are making a fortune from AI, but crypto investors should be watching Powell—not Amazon’s earnings. The S&P 500 has gained 30.6% in the first 20 months of Trump’s second term. It looks like a boom, but in reality the index is being propped up entirely by the AI narrative. Peter Schiff warns that most stocks are already in a bear market, while Dow futures tumbled on Anthropic news, with Dell, AMD, and CoreWeave leading losses in the AI sector. This “narrow bull market” is extremely dependent on liquidity. If expectations for Fed rate cuts are pushed back and the dollar index rebounds, institutional money will pull out of high-beta AI stocks first, with the effects then spreading to BTC. BTC is currently at $81,158, down 3.10% over 24 hours—it’s already reacting ahead of time. The path is clear: AI stocks get repriced lower → risk appetite contracts → BTC follows them down → alt season gets pushed back. But the reverse dynamic matters even more: if the cloud giants keep ramping up AI capital spending, demand for computing power and electricity will spill over, accelerating miners’ shift to AI data centers and indirectly draining liquidity from BTC supply. My forecast: BTC is likely to trade weakly around $80,000 in the short term. If earnings from Nasdaq’s AI leaders fall short of expectations, BTC could dip to $78,000. But as long as the rate-cut cycle remains intact over the medium term, the narrative of institutions buying BTC on dips will hold. Are you buying the dip, or waiting for AI stocks to crash first?