Last week’s AI selloff in U.S. equities was driven by two factors: 1/ an emotional misreading of Broadcom CEO’s comments by sell-side analysts. 2/ China’s EUV “Manhattan Project” narrative. Neither has solid fundamental grounding over the next 6 to 12 months, just pure noise. This week, AI stocks are broadly rebounding even the weakest ones, including Oracle, which is still weighed down by debt concerns. This usually signals the end of panic and a local bottom. Nasdaq100 has now fully retraced the losses triggered by those “bearish headlines.” Given ETH’s tech-beta characteristics, its correlation with the Nasdaq-100 remains high.

As precious metal leaders like platinum, palladium, and silver are sharply pulling back, BTC and ETH are starting to rebound. Positioning in these metals had become excessively crowded and extremely overbought in the short term, pushing risk higher. This has triggered profit-taking and a rotation away from overheated trades into relatively undervalued assets.

The upside in silver, palladium, and platinum is a short squeeze and unsustainable. Once they start to reverse, they are likely to drag gold lower as well. The capital will rotate out of precious metals and into BTC and ETH.