Smart Money Flow: Where is the money going? Wall Street funds are疯狂 selling off tech stocks and fully investing in this crypto sector. Those who understand are already positioned!

The market is undergoing a silent shift. From tech stocks to gold, and now to $BTC, various assets that have been fiercely chased by capital over the past few months are almost simultaneously experiencing sell-offs. This is different from last year’s panic triggered by a single event; this time, it resembles a series of slowly accumulating doubts that ultimately broke investors’ nerves.

Thursday’s market action clearly demonstrated this. The S&P 500 fell by 1.2%, with the Nasdaq 100 dropping even more, marking the largest correction since April of last year. Software stocks remained weak, while news of AI company Anthropic launching a financial research model heightened concerns about technological disruption. Silver prices plummeted 17%, falling from historic highs along with gold.

The turbulence in the crypto market was especially intense. $BTC dropped over 10% in a single day, wiping out all gains since Trump won the election. Investors began closing out leveraged positions that had been built up but are now at a loss. The sell-off intensified Thursday afternoon, with $BTC briefly falling below $63,000, nearly halving its high from four months ago, dragging down other cryptocurrencies and related ETFs.

Meanwhile, U.S. Treasury prices rebounded, reasserting their role as traditional safe-haven assets. This shift in capital flow contrasts sharply with the optimism at the start of the year, when widespread expectations of an AI boom, a resilient economy, and upcoming rate cuts were fueling a rally in U.S. stocks.

Although corporate earnings overall remain solid, investors’ focus has quietly shifted. They are re-evaluating a series of risks: which companies might be eliminated in the AI race; what the monetary policy path will look like if Kevin W., nominated by Trump, replaces Powell as Fed Chair; and whether valuations of $BTC, gold, and tech giants like Alphabet have become unsustainably high.

In the stock market, the sell-off was relatively mild but widespread, with 9 out of 11 sectors in the S&P 500 closing lower. Beyond concerns about AI losers, the market is also questioning whether the huge investments tech companies are making in AI will pay off. Alphabet’s stock remained pressured after beating revenue expectations, while Amazon’s after-hours stock plunged 10% following its announcement to invest $2 trillion this year—an embodiment of this sentiment.

Market observers note that people are clearly shifting toward defensive positions. It’s more like a “fire first, ask questions later” environment. The fear and uncertainty across the entire market are evident. The recent correction reflects a common concern: the hottest stocks and assets have risen too quickly, and the market needs a “clearing out” or “reset.” Momentum may already be overextended.

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