The U.S. stock market was buzzing last night, while the crypto market was dead quiet—two kinds of weather on the same night.
AI cloud provider CoreWeave reported earnings that beat expectations, and its stock jumped 24.71% overnight, taking the entire semiconductor sector along for the ride: the Philadelphia Semiconductor Index rose 4.71%, AMD gained 7.15%, Micron climbed 11.7%, and Nvidia was up 2.76%. The Nasdaq rebounded too. People are really willing to pour money into AI.
At the same time, Bitcoin was flat around $73,700, barely moving. Spot ETFs saw net outflows for the fourth day in a row, with another $95 million leaving yesterday. The U.S. 10-year Treasury yield surged to 5.02%, and the market now puts the odds of a Fed rate hike in December at close to 90%. People would rather chase AI stocks than buy crypto right now.
My take is that this isn’t about whether AI or crypto is right or wrong. It’s about money picking the easier target: AI stocks have earnings and orders, so you can put numbers to the story; crypto has only macro headwinds and ETF outflows, so its story relies on faith. In the short term, for crypto to catch up with the stock market rebound, it first needs rate-hike expectations to cool or ETF outflows to stop. “It’s fallen a lot, so it must go up” isn’t enough to hold it up.
As a wage earner carrying debt, watching this divergence gives me one feeling: it’s fine to watch other people’s excitement, but don’t get itchy with your own positions just because the neighbors are up. Just keep an eye on where the money is going—the ETF flows and Treasury yields. Those two indicators are more honest than any trading calls.
Would you rather hold AI stocks right now, or keep waiting in crypto for the wind to change?
$BTC $ETH $SOL
This is not investment advice. Make your own decisions.
AI cloud provider CoreWeave reported earnings that beat expectations, and its stock jumped 24.71% overnight, taking the entire semiconductor sector along for the ride: the Philadelphia Semiconductor Index rose 4.71%, AMD gained 7.15%, Micron climbed 11.7%, and Nvidia was up 2.76%. The Nasdaq rebounded too. People are really willing to pour money into AI.
At the same time, Bitcoin was flat around $73,700, barely moving. Spot ETFs saw net outflows for the fourth day in a row, with another $95 million leaving yesterday. The U.S. 10-year Treasury yield surged to 5.02%, and the market now puts the odds of a Fed rate hike in December at close to 90%. People would rather chase AI stocks than buy crypto right now.
My take is that this isn’t about whether AI or crypto is right or wrong. It’s about money picking the easier target: AI stocks have earnings and orders, so you can put numbers to the story; crypto has only macro headwinds and ETF outflows, so its story relies on faith. In the short term, for crypto to catch up with the stock market rebound, it first needs rate-hike expectations to cool or ETF outflows to stop. “It’s fallen a lot, so it must go up” isn’t enough to hold it up.
As a wage earner carrying debt, watching this divergence gives me one feeling: it’s fine to watch other people’s excitement, but don’t get itchy with your own positions just because the neighbors are up. Just keep an eye on where the money is going—the ETF flows and Treasury yields. Those two indicators are more honest than any trading calls.
Would you rather hold AI stocks right now, or keep waiting in crypto for the wind to change?
$BTC $ETH $SOL
This is not investment advice. Make your own decisions.