"The cryptocurrency is currently suffering from weak overall sentiment in the broader stock market amid the battle for the AI throne and tumbling liquidity. Futures traders are retreating further, and spot ETF flows remain unsustainable. Meanwhile, the risk of a broader all-out war in the Middle East, combined with the anticipation of new economic data and corporate earnings, is keeping traders on edge."
"The Wall Street Journal reports that advancing AI capabilities from OpenAI and Anthropic are causing an existential crisis for traditional software firms in legal and finance sectors. Investors are selling off shares as businesses move toward cheaper AI-generated alternatives, sparking significant fears of a tech bubble and widespread job displacement. Also in stock market, corporate Bitcoin hoarding strategies are unravelling as prices fall below purchase averages, leaving firms like Michael Saylor's Strategy with massive paper losses."
"This shift from leveraged success to potential forced liquidation threatens a broader market crash as the model of buying tokens with debt becomes unsustainable. The Financial Times argues that Michael Saylor's Strategy has hit a strategic dead end at a $76,000 breakeven, turning its former growth loop into a cycle of dilution and debt. With no free cash flow from its core software business, the firm must choose between further shareholder dilution or struggling under debt unless Bitcoin prices see a major rally."
Bitcoin slumped to a new low at $72.8K amid weak stock-market sentiment, collapsing liquidity, retreating futures traders, and unsustainable spot ETF flows. Advancing AI capabilities from OpenAI and Anthropic are driving traditional legal and finance software firms toward an existential crisis, prompting investor sell-offs and fears of a tech bubble and job displacement. Corporate Bitcoin hoarding strategies are unraveling as prices fall below purchase averages, leaving firms like Michael Saylor's Strategy with massive paper losses and a $76,000 breakeven that forces dilution or debt without a major rally. Rising US military mobilization in the Middle East elevates regional war risk and reduces speculative liquidity.
Read at London Business News | Londonlovesbusiness.com
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