Bitcoin and crypto stocks slide with the AI trade, but hold up better
A post-election rally faded fast as AI stocks plunged, yet crypto held up better than equities despite roughly $1 billion in liquidations.
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Key takeaways
- The post-election rally reversed quickly as AI stocks sold off.
- Crypto and crypto-linked stocks were caught in the downdraft.
- About $1 billion in leveraged positions were liquidated.
- Crypto held up relatively better than AI equities.
- A Wintermute trader takes a 'glass half full' view.
So much for the post-election rally. It didn't last. AI stocks plunged this week, and bitcoin and crypto equities got dragged down right behind them, according to CoinDesk's reporting on Thursday.
A liquidation wave, but relative strength
The selloff triggered forced liquidations worth around $1 billion. That's what happens when leveraged traders land on the wrong side of a fast reversal: the exchange closes you out, and you don't get a vote.
Still, read the details. Cryptocurrencies held up relatively better than the AI names driving the broader move. Not a win. But not a rout, either.
The 'glass half full' take
A trader at market maker Wintermute called it a glass half full, pointing to that relative resilience. The material I've got doesn't spell out the full reasoning, so don't oversell it. It's one desk's read, not a forecast, and a market maker has its own reasons to sound calm.
Why it matters
Crypto is trading more and more in step with big tech and AI sentiment. If you hold bitcoin or crypto stocks, your risk isn't just crypto news anymore. A wobble in AI equities can hit your portfolio the same day. Check what you actually own.
There's a flip side, and it's mildly encouraging: holding up better than a sector in free fall suggests buyers are still showing up. Whether they keep showing up if AI stocks keep sliding? That's the real question, and nobody's answered it yet.
Source: CoinDesk
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Sofia Marek
Sofia reviews exchanges and crypto casinos, focused on fees, safety and what actually reaches the player.
