Alexander Lorenzo argues that Wall Street could soon dump overvalued AI stocks and move money into crypto. He points to the S&P 500 near all-time highs while Bitcoin sits near cycle lows, and flags the DTCC's October launch as a possible catalyst for the shift.
People liquidate AI stocks because of the AI bubble and start dumping it into crypto. I'm gonna blow your mind. This is a theory. We talked about it last live Q&A a little bit, right? So this is the S&P 500. We're pretty much at like all-time high. But if you look at Bitcoin's price, we're almost at like all-time low, at least for the cycle. So there was a running theory that I had. I don't know. I haven't really verified it with proof. I wouldn't like take it to the bank and cash it out. But I would say that there could be a capital rotation. So for the stock market, we're at all-time high. The potential for it to keep going up is less than what Bitcoin going up, right? So we have a situation where we could see a fall and then we have crypto going up at the same time, right? So again, and then we have the DTCC in October launching full scale, which is the plumbing behind the stock market. It could be an interesting capital rotation. It could be like people liquidate AI stocks because of the AI bubble and start dumping it into crypto. I wouldn't, I wouldn't be, it wouldn't be far-fetched to say that, to be honest. Crypto following the stock market or stock market following crypto is not really true according to at least previous, at least current history. I know that's something that people say. It's very, and you know, I've even said it in the past, but in current history, that has not been true. Stock market is at all-time high. I don't see why, like this AI bubble, right? It is a bubble. I've done some pretty deep research. It is like debt-based. The AI boom is debt-based. They're financing the heck out of it. And so, yeah, could it pop and then rotate into crypto? I wouldn't be surprised.
