πCrypto is having a moment. Not the good kind.
π BTC (my old friend), why are you doing us like this?
In case you missed the crypto news this week, BTC is down roughly 28% YTD π, ETH is having an even worse time, and the people who were supposed to be the true believers are starting to act π
nervous.
π° This weeks Crypto news highlights
π·οΈ Michael Saylor Finally Blinked
β³ πͺ The man who staked his entire reputation on BTC being "digital gold" sold 32 of them.
β³ π¬ That's 0.004% of Strategy's holdings. To be fair, it's a rounding error, but the market treated it like founding fathers pawned the Liberty Bell.
β³ π The disclosure triggered a cascade: $7 billion in leveraged positions liquidated, $3.2 billion in ETF outflows, and BTC cratering from ~$72,840 to below $62,000 in a single week.
β³π Not a good look for the man from Nebraska.
π» ETH Is Having an Existential Crisis
β³ π ETH is down approximately 47% YTD. Briefly losing its #2 crypto ranking to Tether's USDT. Yes, a stablecoin outranked Ethereum (i.e. score 1 for the luddites, 0 for the farmers).
β³ π A wallet linked to ETH co-founder Joseph Lubin (not Vitalik, the other guy) moved 110,000 ETH ($170M) after sitting dormant for over three years.
β³ π€ The official story: it was collateral posted to defend a $259 million DAI loan. That is essentially a margin call in slow motion. Neither Lubin nor Consensys said a word publicly. Make of that what you will.
π¦ Where the Money Is Actually Going
β³ π€ BTC capital is quietly rotating out of crypto and into AI infrastructure. Remember when I said, "if your company isn't leading with AI, do you even have a company?".
β³ π The S&P just hit a record high, and the AI boom has added $19 trillion in market cap over the last 12 months to the top 50 public companies alone.
β³ π€― That's 13x the value of Bitcoin and every other crypto combined. That's right. If you take all Crypto values of all token together and multiply that time 13, you get the AI market cap increase in the last year. Let that sink in.
β³ π Keep in mind, that this isn't a regular sector rotation. This is a once-in-a-generation gravitational event. The kind that doesn't ask you for permission, doesn't care if you recalibrate, and certainly doesn't wait for you to rebalance.
π§ΎWhat's this mean for your crypto portfolio?
Hopefully, you didn't go all-in on crypto.
I personally put in enough for some exposure, but not enough to lose sleep over if it goes to zero. Clearly not a trading strategy, just some adult risk management with a side of humility. π I understand that position sizing isn't sexy. But neither is explaining to your accountant why you owe taxes on gains you no longer have.
π¬The real people getting hurt right now aren't the ones who bought a little Bitcoin out of curiosity. They're the ones who confused conviction with concentration.
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Remember, Charlie Munger once said that men go broke From "Ladies, Liquor, and Leverage". And unfortunately, too many people over-leveraged Crypto with confidence.
As the elitist Bored-Apers used to say, "NGMI".