Analysis: Bitcoin's end to the downtrend is the first signal of a "capitulation event," Cryptocurrency, AI, and US Stocks are now deeply intertwined

BlockBeats News, November 24th, renowned strategist Peter Tchir from Academy Securities warned in a recent report that a highly intertwined relationship, akin to a "strong bond," has formed between cryptocurrency, artificial intelligence infrastructure development, and passive investment funds in the US stock market. As passive investment has surpassed active investment, through ETF tools such as QQQ, billions of retirement and hedging funds are effectively deeply tied to the capital expenditure cycle of companies in the crypto treasury (DAT) sector and AI giants. On October 11th, during the US stock market closing period, Bitcoin experienced a sharp sell-off from $122,000 to $105,000, a collapse that not only devastated the crypto assets but also exerted direct liquidity pressure on widespread stock portfolios through the transmission chain of ETFs and related listed companies.

Currently, market attention has collectively turned to the stability of the crypto market. Peter Tchir believes that the risks the current economy faces are greater than ever before. If cryptocurrency fails to stabilize, the resulting liquidity crunch and wealth erosion will not only end the tech stock frenzy but may also drag down the pace of overall macroeconomic growth. Everyone is holding their breath: Bitcoin's stabilization will be the first signal that the "pain trade" is coming to an end. Goldman Sachs trader Brian Garrett bluntly stated that many clients are viewing Bitcoin's performance as a barometer of future risk appetite, and if Bitcoin trading improves, a year-end rally may reemerge.