Tag Archives: ai

Nvidia stumbles, crypto shivers, markets wobble: The AI reckoning begins

Nvidia stumbles, crypto shivers, markets wobble: The AI reckoning begins

Global markets absorbed a sharp technology sell-off that began in the US session, triggered by what traders now call a Nvidia hangover. The artificial intelligence leader’s latest earnings, while technically in line with forecasts, failed to feed the market’s insatiable appetite for perfection.

Investors reacted by rotating capital out of high-flying tech names and into more cyclical sectors like financials, a move that left the Nasdaq and S&P 500 in the red while the Dow Jones Industrial Average eked out a nominal gain. This session underscores a fragile truth. When expectations run too far ahead of reality, even solid results can spark a retreat.

The numbers tell a clear story. The Nasdaq Composite fell 1.18 per cent to 22,878.38, with technology and communication services bearing the brunt of the selling. The S&P 500 dropped 0.54 per cent to 6,908.86, pulled lower by a 5.5 per cent slump in Nvidia, its worst single-day performance since April 2025.

Meanwhile, the Dow Jones Industrial Average inched up 0.03 per cent to 49,499.20, supported by gains in major banks such as JPMorgan Chase and Bank of America. The Philadelphia Semiconductor Index dropped 3.2 per cent, threatening an impressive 11-week winning streak. This rotation reveals how tightly markets now tie AI enthusiasm to semiconductor valuations, and how quickly sentiment can shift when growth narratives face even minor scrutiny.

Broader macro signals added to the cautious tone. The 10-year US Treasury yield fell to 4.01 per cent, with analysts noting a bull flattening of the yield curve that often signals concerns about moderating global growth. At the same time, spot gold rose to approximately US$5,193.20 per ounce, an increase of over US$21 from the previous session, as investors weighed geopolitical progress in US-Iran nuclear talks. These moves suggest capital is seeking both safety and optionality, a pattern that typically emerges when equity momentum stalls and uncertainty about the growth path intensifies.

Asian markets reflected the risk-off mood at the open. The Nikkei 225 dropped 0.25 per cent, and South Korea’s Kospi fell 1.74 per cent. Yet despite the daily dip, Asian stocks remain on track for their best February on record, with the MSCI Asia Pacific Index up 6.3 per cent for the month. In Singapore, the STI opened down 0.19 per cent at 4,954.87, but the local market has seen a strong recovery overall in 2026, with the STI rising 22.7 per cent year to date.

Corporate news added another layer. Block Inc shares surged over 20 per cent in after-hours trading following a surprise announcement of plans to cut 4,000 roles, nearly half its workforce, in a strategic pivot toward AI. This stark move highlights how companies are reshaping their cost structures to chase the next wave of technological investment, even at high human cost.

The crypto market mirrored this macro-driven risk-off move, falling 1.22 per cent to US$2.32T in 24 hours. Critically, the 24-hour correlation with the S&P 500 stood at 89 per cent, a level that leaves little room for the decoupling narrative some enthusiasts still promote. This tight linkage shows crypto now behaves as a high-beta risk asset, moving in lockstep with traditional equity sentiment and liquidity expectations.

For those who view speculative financial activities as forms of gambling with better odds, this correlation is not surprising but rather a confirmation that crypto’s price discovery remains deeply embedded in the broader financial system’s risk appetite.

Under the surface, crypto-specific dynamics amplified the move. The Fear and Greed Index held at Extreme Fear with a reading of 16, reflecting deep-seated caution among participants. Simultaneously, total derivatives open interest fell 6.83 per cent in 24 hours, signalling a rapid deleveraging of speculative positions.

When traders exit leveraged bets amid uncertainty, downward pressure intensifies, creating feedback loops that can overshoot fundamental values. This environment rewards those who monitor liquidity signals and derivatives flows more closely than headline narratives, a practice aligned with a disciplined, independent approach to market analysis.

From a technical perspective, the market now tests the US$2.32T level, which aligns with the 78.6 per cent Fibonacci retracement. The next major support sits at the yearly low of US$2.17T. A break below that level could trigger a test of the 200-day moving average near US$3.05T, while a rebound above US$2.44T, the 38.2 per cent retracement, would suggest the selloff is losing momentum.

Resistance also builds at the 50 per cent retracement near US$2.52T. Yet these traditional technical tools must be applied with caution. Decentralised crypto systems do not conform to legacy regulatory tests like the Howey test, and their valuation frameworks must evolve beyond equity-market analogies to account for network effects, token utility, and on-chain activity.

This moment reveals the tension between AI-driven hype cycles and the underlying mechanics of market structure. When a single company’s earnings can ripple across equities, bonds, commodities, and crypto, it signals both the centrality of technology to modern growth narratives and the fragility of sentiment-driven valuations.

Independent analysis becomes essential here. Rather than chasing the latest headline, investors benefit from watching liquidity indicators, derivatives positioning, and cross-asset correlations. These metrics offer clearer signals about where capital truly flows when fear replaces greed, and they help separate structural shifts from temporary noise.

In conclusion, the near-term path for crypto likely hinges on whether the US$2.17T support holds. If it does, a relief bounce toward US$2.44T remains possible as short-term oversold conditions ease. If it breaks, the test of the 200-day moving average near US$3.05T could invite deeper recalibration.

For traditional markets, the question is whether AI expectations can stabilise without further violent repricing. The bull flattening in yields, the rotation into financials, and the sharp move in gold all point to a market searching for a new equilibrium. In this environment, those who combine technical awareness with a critical view of narrative-driven investing will be best positioned to navigate the next phase.

 

Source: https://e27.co/nvidia-stumbles-crypto-shivers-markets-wobble-the-ai-reckoning-begins-20260227/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Markets in freefall: AI fears trigger US$4B Bitcoin ETF exodus

Markets in freefall: AI fears trigger US$4B Bitcoin ETF exodus

From Wall Street to Asian bourses, from oil futures to digital currencies, the message is clear: risk appetite has evaporated, and a defensive crouch has become the default stance. This is not merely a localised correction or sector-specific adjustment. This is a full-scale recalibration of market sentiment, driven by artificial intelligence anxieties, robust economic data that complicates the rate-cut narrative, and a commodity complex under siege from supply gluts.

In my view, what we are witnessing represents a significant stress test for the interconnected global financial system, and the results so far paint a sobering picture.

The epicentre of this week’s turmoil lies squarely on Wall Street, where fresh concerns about the long-term implications of artificial intelligence on commercial real estate and software sectors triggered a violent selloff on Thursday. The Nasdaq Composite plummeted 2.03 per cent, erasing weeks of gains in a single trading session. The S&P 500 fared only marginally better, dropping 1.57 per cent as investors scrambled to reduce exposure to growth-oriented names.

These are not trivial declines. They reflect a fundamental reassessment of valuations in sectors that have carried the market to record highs over the past year. The AI revolution, once celebrated as a catalyst for unprecedented productivity gains, has now become a source of anxiety as market participants question whether the technology will disrupt more businesses than it creates.

This flight from risk assets has produced a predictable but nonetheless significant rotation into safe havens. United States Treasuries rallied sharply, pushing the 10-year yield down to approximately 4.09 per cent, its lowest level since early December. This move tells us something important about investor psychology right now.

When capital flows aggressively into government bonds amid strong economic data, it signals that fear has overtaken greed as the dominant market emotion. The traditional playbook would suggest that robust employment figures and resilient consumer spending should push yields higher. Instead, the opposite has occurred, revealing the depth of concern about potential dislocations in equity markets.

The commodity complex has not escaped the carnage. Oil prices fell more than 2 per cent after a devastating report from the International Energy Agency projected a record global crude surplus of 3.7 million barrels per day in 2026. This figure represents a supply glut of historic proportions, one that threatens to keep energy prices depressed for the foreseeable future.

For oil-producing nations and energy companies, this outlook presents serious challenges to fiscal planning and capital expenditure decisions. For consumers and central bankers, lower energy costs could provide some relief on the inflation front, though the broader economic implications of a weakening commodity complex remain concerning.

Gold, traditionally the ultimate safe haven during periods of market stress, has also stumbled. The precious metal tumbled below the US$5,000 per ounce mark as strong jobs data dampened hopes for immediate interest rate cuts from the Federal Reserve. This development highlights a fascinating tension in current market dynamics.

Investors want protection from equity volatility, but they also recognise that a strong labour market gives the Fed little incentive to ease monetary policy. Higher-for-longer interest rates diminish the appeal of non-yielding assets like gold, creating downward pressure even during periods of elevated uncertainty.

Perhaps the most instructive lesson from this week’s market action comes from the cryptocurrency sector, which has declined 1.55 per cent over the past 24 hours, bringing its total market capitalisation to US$2.28 trillion. What makes this move particularly significant is not its magnitude but its correlation structure.

The crypto market now exhibits a 93 per cent correlation with the S&P 500 and an 89 per cent correlation with gold over the same period. These figures demolish any remaining arguments that digital assets function as uncorrelated portfolio diversifiers during stress events. When correlations approach unity across asset classes, it tells us that macro forces, specifically interest rate expectations and dollar dynamics, are driving all boats in the same direction.

The institutional dimension of the crypto selloff deserves careful attention. Bitcoin exchange-traded fund assets under management fell to US$97.31 billion the previous day, indicating sustained selling pressure from professional investors. This was compounded by US$80.21 million representing long positions that were forcibly closed.

The combination of spot selling and leveraged position unwinding created a negative feedback loop that amplified the downward move. In my assessment, this dynamic represents one of the most vulnerable aspects of the current crypto market structure, where institutional flows and derivative markets can interact in ways that accelerate price moves beyond what fundamentals would justify.

Looking ahead, the technical picture for Bitcoin centres on the US$66,000 support zone. A decisive break below this level could open the door to a swift decline toward US$50,000, a scenario that Standard Chartered has publicly identified as possible.

The key near-term catalyst will be the FOMC meeting minutes scheduled for release on February 19, which could provide crucial guidance on the Federal Reserve’s interest rate trajectory. Until then, markets will likely remain in a holding pattern, with participants reluctant to commit capital until they have greater clarity on the direction of monetary policy.

My view on the current situation is that we are experiencing a necessary and ultimately healthy correction in asset prices that had become stretched by optimism about technological transformation and monetary easing. The AI narrative, while powerful, had pushed valuations in certain sectors to levels that assumed perfection in execution and adoption.

Reality rarely cooperates with such assumptions. Similarly, the expectation that central banks would rush to cut rates despite solid economic data always seemed premature. Markets are now adjusting to a more realistic assessment of both opportunities and risks.

The path forward will depend heavily on whether institutional investors interpret current price levels as buying opportunities or as warnings to further reduce exposure. Daily ETF flow data will provide the most immediate signal of sentiment. A return to consistent net inflows would suggest that professional capital views the selloff as a dip worth buying. Continued outflows would indicate that de-risking has further to run.

For now, the burden of proof rests with the bulls, who must demonstrate that support levels will hold up against persistent macroeconomic headwinds and technical pressure. The markets have spoken clearly this week, and their message is one of caution, recalibration, and respect for the powerful forces that shape global capital flows.

 

Source: https://e27.co/markets-in-freefall-ai-fears-trigger-us4b-bitcoin-etf-exodus-20260213/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Markets on edge: AI rally fizzles as crypto plunges below US$2.42 trillion

Markets on edge: AI rally fizzles as crypto plunges below US$2.42 trillion

Investors grappled with stretched valuations and growing doubts about the sustainability of Wall Street’s AI-driven rally. The mood shifted noticeably risk-off, not because of any sudden macroeconomic shock, but due to a quiet accumulation of concerns. Chief among them was whether the market had priced in too much optimism too soon. This unease was compounded by mixed US economic data that painted a picture of an economy slowing just enough to unsettle markets without triggering outright alarm.

The ADP employment report for January showed only 22,000 jobs added, well below the expected 45,000, signalling potential softness in the labour market. At the same time, the ISM Services index came in slightly above expectations at 53.8, suggesting pockets of resilience in the services sector. Together, these indicators created ambiguity, enough to fuel speculation that the Federal Reserve might need to act sooner rather than later, especially with Chair Jerome Powell set to step down in May.

Equity markets reflected this tension. The Dow Jones Industrial Average edged up by 0.53 per cent, buoyed by more defensive or cyclical components, while the S&P 500 slipped 0.51 per cent and the Nasdaq plunged 1.51 per cent. The divergence underscored a rotation away from the tech-heavy leadership that has dominated since late 2024. Software stocks bore the brunt of the selloff, revealing investor fatigue with sky-high multiples and limited near-term earnings visibility for most companies outside a narrow band of AI beneficiaries.

The VIX, Wall Street’s fear gauge, climbed to 18.64, its highest level in weeks, confirming rising anxiety beneath the surface. In this environment, broadening exposure beyond mega-cap tech makes strategic sense. Hence the renewed appeal of equal-weighted or low-volatility equity indices, as well as selective cyclicals like financials and industrials, and defensives such as certain healthcare segments.

Bond markets offered little clarity. Treasury yields moved in opposite directions. The 2-year yield fell 1.6 basis points to 3.553 per cent, reflecting bets on earlier rate cuts, while the 10-year yield rose slightly to 4.274 per cent, suggesting some investors still see inflation risks lingering in the longer term. The US Treasury’s decision to hold auction sizes steady provided no new supply shocks, but it also removed any near-term catalyst for duration extension. Still, the expectation of two Fed rate cuts in the second and third quarters of 2026 supports a gradual move toward longer-duration, high-quality fixed income, particularly in developed and emerging market investment-grade debt.

Currency markets mirrored the dollar’s resilience amid uncertainty. The DXY rose 0.18 per cent to 97.616, with the greenback gaining across all G10 pairs. USD/JPY jumped to 156.86, driven partly by political developments in Japan, where Prime Minister Sanae Takaichi’s anticipated election win is expected to usher in aggressive fiscal and defence spending. Despite this short-term strength, the structural outlook for the dollar remains bearish. With the Fed likely to pivot toward easing while other central banks hold steady or tighten modestly, the path of least resistance for the DXY is downward. EUR/USD, currently at 1.1807, stands to benefit, as does a broader weakening of USD/JPY over time.

Commodities told a story of geopolitical risk meeting long-term fundamentals. Brent crude surged two per cent to US$68 per barrel amid conflicting signals on US-Iran relations. While diplomatic talks are scheduled in Oman, President Trump’s renewed warnings and visible military buildup in the region stoked fears of escalation. That tension could easily push oil back toward last June’s peak of US$80, even though OPEC’s planned supply increases should cap prices over the medium term.

Meanwhile, gold rose to US$4,964 per ounce and silver jumped 3.5 per cent to US$85, both benefiting from safe-haven demand and dovish rate expectations. The precious metals complex remains fundamentally strong, though prone to sharp swings as macro narratives shift.

In Asia, markets staged a mild relief rally. South Korea’s Kospi hit a record high, up 1.6 per cent, while China’s Shanghai Composite gained 0.8 per cent, lifted by solar stocks reportedly boosted by visits from teams linked to SpaceX and Tesla. This subtle but telling signal pointed to renewed foreign interest in China’s green tech sector.

The crypto market buckled under macro pressure. Total market capitalisation dropped 6.61 per cent to US$2.42 trillion, led by Bitcoin’s decline. Notably, crypto’s correlation with traditional assets remains elevated, 72 per cent with the S&P 500 and 88 per cent with gold, confirming its current role as a rates- and dollar-sensitive risk asset rather than a true hedge.

A violent unwind of leveraged positions accelerated the fall, with US$654 million in liquidations in 24 hours, including US$197 million in Bitcoin alone. The Crypto Fear & Greed Index plummeted to 11, deep into Extreme Fear territory and its lowest reading since November 2025. This suggests the market is in a capitulation phase, where price action is driven less by fundamentals and more by forced deleveraging.

The immediate focus now rests on the US$2.42 trillion support level. Holding here could spark a technical bounce toward US$2.61 trillion, the 78.6 per cent Fibonacci retracement. But a break lower opens the door to US$2.28 trillion. With US Initial Jobless Claims due later today, any sign of labour market deterioration could reinforce expectations of Fed easing, but also deepen risk aversion in the short run.

For now, the confluence of technical breakdowns, leveraged unwinds, and souring macro sentiment has created a fragile equilibrium. The next 24 to 48 hours will be decisive in determining whether this pullback marks a healthy reset or the start of a deeper correction.

 

Source: https://e27.co/markets-on-edge-ai-rally-fizzles-as-crypto-plunges-below-us2-42-trillion-20260205/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j