Fears of an AI bubble have sparked a global sell-off, dragging AI tokens down with them. What should we watch next?
This isn’t just a crypto story. Global markets are starting to slide amid fears of an AI bubble. The Nasdaq fell 5.5%, the Philadelphia Semiconductor Index plunged 12.2%, and South Korea’s KOSPI briefly tumbled 8.8% intraday, triggering a circuit breaker. Japan and Taiwan also fell sharply. Investors are beginning to question whether all the money poured into AI infrastructure can actually generate returns.
The crypto market hasn’t escaped either. Bitcoin has fallen back below $76,000 after trading above $80,000, while Ethereum is back around $2,225. AI-related tokens have fared even worse, dropping 4.79% overall in the past 24 hours. Most of them, including NEAR, TAO, RENDER, and FET, are down.
My take: this is a reassessment of the returns on AI investments, with high leverage and fear amplifying the volatility. The fundamentals haven’t collapsed overnight, but risk appetite is clearly shrinking in the short term, and both tech stocks and AI tokens will remain under pressure. The next few trading sessions will be crucial. If semiconductors and institutional risk appetite stay weak, crypto will have a hard time rallying on its own.
So I haven’t tried to buy the dip in AI tokens. I’m keeping my position size in check and watching for signs of a bottom in U.S. semiconductor stocks and institutional flows, rather than chasing altcoins lower.
Are you still holding AI tokens, or have you already trimmed your position? #非农今晚揭晓，美股能否绝地反击？
This isn’t just a crypto story. Global markets are starting to slide amid fears of an AI bubble. The Nasdaq fell 5.5%, the Philadelphia Semiconductor Index plunged 12.2%, and South Korea’s KOSPI briefly tumbled 8.8% intraday, triggering a circuit breaker. Japan and Taiwan also fell sharply. Investors are beginning to question whether all the money poured into AI infrastructure can actually generate returns.
The crypto market hasn’t escaped either. Bitcoin has fallen back below $76,000 after trading above $80,000, while Ethereum is back around $2,225. AI-related tokens have fared even worse, dropping 4.79% overall in the past 24 hours. Most of them, including NEAR, TAO, RENDER, and FET, are down.
My take: this is a reassessment of the returns on AI investments, with high leverage and fear amplifying the volatility. The fundamentals haven’t collapsed overnight, but risk appetite is clearly shrinking in the short term, and both tech stocks and AI tokens will remain under pressure. The next few trading sessions will be crucial. If semiconductors and institutional risk appetite stay weak, crypto will have a hard time rallying on its own.
So I haven’t tried to buy the dip in AI tokens. I’m keeping my position size in check and watching for signs of a bottom in U.S. semiconductor stocks and institutional flows, rather than chasing altcoins lower.
Are you still holding AI tokens, or have you already trimmed your position? #非农今晚揭晓，美股能否绝地反击？
