📰 WHAT'S BEHIND CRYPTO'S LATEST MARKET SELL-OFF? In the last seven days, Bitcoin is down 2.8% and Ethereum is down nearly 6%. This is largely because markets are panicking about the AI trade unwinding leading to derisking across the board. If holding Mag 7 companies is too risky, then holding digital currencies is definitely too far out on the risk curve for many. When investors start questioning the valuations of the biggest companies in the world, speculative assets are usually the first to get dumped. Jensen Huang’s affair also seems to be weighing on sentiment. Investors worry that the controversy could hurt Nvidia, which would in turn drag down the broader market. Nvidia has become so important to the AI trade that virtually anything threatening the company is now treated as a macroeconomic event. It's a strange world when the sex life of a semiconductor CEO can nuke the crypto market. Crypto isn’t the hedge against equities that it used to be. We need a more defined cycle sentiment for that to play out. Right now, crypto is trading more like a leveraged bet on risk appetite than an alternative to the traditional financial system. Until the market finds a narrative of its own, we're probably going to keep getting dragged around by whatever happens on Wall Street. The bull case for many digital assets hasn’t changed. If you liked them when the market was raging upward, you should like them even more now. The most successful long-term crypto investors I know have amazing discipline when it comes to DCAing good names during tough times. They understand that the best opportunities rarely come when everyone is feeling optimistic. There’s something to be learned from that. Screenshot: @Rob1Ham