Crypto majors held strong on Tuesday even as the macro band turned sharply against risk assets.
Bitcoin was trading just over $81,000 Tuesday morning in Asia, after briefly touching $82,026 overnight. Solana (SOL) and stood out among the majors, up as much as 2% on the day. BNB added 1.7% to $662, XRP held at $1.46, up 0.9% on the day while ether fell 0.8%.
Investor Michael Burry, made famous in The Big Short for discussing the 2008 housing collapse, warned in a Substack article that the Nasdaq 100 was trading at 43 times earnings, well above the implied level of around 30 times, and compared the current setup to “the scene of the bloody car crash, minutes before it happened.”
Burry pointed to the 70% rise in the Philadelphia Semiconductor index since late March as the centerpiece of what he called a parabolic rise in tech valuations, advising readers to take profits and reduce their exposure to the AI business.
“Wall Street may be overestimating the earnings of our fastest growing and most valuable companies by more than 50%,” Burry wrote.
Brent crude climbed nearly 1% above $105 a barrel after President Donald Trump cast doubt on the ceasefire with Iran in remarks Monday, fueling concerns that the closure of the Strait of Hormuz could be extended. The 10-year Treasury yield rose to 4.42% and the dollar strengthened against all of its Group of 10 peers due to safe-haven demand.
Asian stock markets have retreated from their record highs. The Kospi fell 5.1% intraday after a senior South Korean politician proposed paying citizens a dividend financed by taxes on AI profits, with the comments fueling sharp swings as investors tried to analyze the scope of the proposal.
The MSCI Asia-Pacific Index oscillated between gains and losses. European futures indicated a loss of 0.6% at the open. U.S. futures edged lower after the S&P 500 closed at a record high on Monday, capping a six-week winning streak that has gained more than 16%, the biggest gain since the global financial crisis.
Bitcoin’s price action will likely be tested later Tuesday as investors watch U.S. inflation figures, which will show the extent to which war-induced price pressures have passed through to consumer prices and could shape the outlook for the Federal Reserve’s interest rate decisions.
A hot number on top of fresh Iranian tensions and Burry’s bearish call would put real pressure on the AI trade thesis underlying the stock rally, while a weak number buys risk assets, including crypto, another week.
