Crypto is getting battered across the board, while chip stocks are going crazy: $SOXL up 14% in a day
Binance perpetual price: $61.70; 24-hour trading volume: $6.08 billion; range: $51.04–$63.26
$BTC at $73,619 (-1.4%) and ETH at $2,056 (-2.9%) are still holding key levels, while chip stocks have already turned around and rallied
The catalyst came on November 9: Google unveiled its next-generation accelerator, powered by chips from $AMD . AMD rose 13.3% that day, and Oppenheimer upgraded it to Outperform with a $600 price target; Broadcom gained 8.8% the same day and another 3.9% the next
Nvidia, by contrast, fell about 5%, with turmoil involving its CEO weighing on the stock—the chip sector didn’t follow the leader this time, and the divergence was stark
Fund flows: $SOXL has 5.86 million tokens held, worth about $360 million; the inverse 3x short ETF SOXS fell 13.1% in a day, with $1 billion in trading volume. Those shorting chip stocks are getting squeezed
Risk: 3x leveraged ETFs magnify both gains and losses. The price has already rebounded about 21% from its $51.04 low, so be careful chasing it higher given the risk of an overnight gap
What to watch next: whether it can hold above the previous high of $63.26; how AMD and Broadcom perform after the U.S. market opens tonight; and whether there are any new developments in the Nvidia turmoil
Which side are you on—chips or crypto—and which do you think will move first?
For informational purposes only; this is not investment advice
Binance perpetual price: $61.70; 24-hour trading volume: $6.08 billion; range: $51.04–$63.26
$BTC at $73,619 (-1.4%) and ETH at $2,056 (-2.9%) are still holding key levels, while chip stocks have already turned around and rallied
The catalyst came on November 9: Google unveiled its next-generation accelerator, powered by chips from $AMD . AMD rose 13.3% that day, and Oppenheimer upgraded it to Outperform with a $600 price target; Broadcom gained 8.8% the same day and another 3.9% the next
Nvidia, by contrast, fell about 5%, with turmoil involving its CEO weighing on the stock—the chip sector didn’t follow the leader this time, and the divergence was stark
Fund flows: $SOXL has 5.86 million tokens held, worth about $360 million; the inverse 3x short ETF SOXS fell 13.1% in a day, with $1 billion in trading volume. Those shorting chip stocks are getting squeezed
Risk: 3x leveraged ETFs magnify both gains and losses. The price has already rebounded about 21% from its $51.04 low, so be careful chasing it higher given the risk of an overnight gap
What to watch next: whether it can hold above the previous high of $63.26; how AMD and Broadcom perform after the U.S. market opens tonight; and whether there are any new developments in the Nvidia turmoil
Which side are you on—chips or crypto—and which do you think will move first?
For informational purposes only; this is not investment advice
