Outpoll | Crypto suffers deeper declines as AI fears send IBM plunging 11%

FinancemarketsMarket Volatility

The sell-off that ripped through financial markets on Monday wasn't just another blip; it was a stark lesson in the new, tangled reality where traditional tech and crypto move in uneasy lockstep. The trigger was IBM's jarring 11% plunge, a direct result of investor jitters over the economic fallout from an AI arms race.This fear—that massive AI investment will crush legacy tech margins while simultaneously sucking capital away from riskier ventures—flowed directly into the crypto space, dragging digital assets down with it. It's a powerful reminder that traders increasingly view both Big Tech and crypto as high-beta, speculative growth plays, vulnerable to the same macroeconomic winds and sentiment shifts.While some analysts see this as a worrying signal of capital reallocation, others argue it's a healthy correction in two historically volatile sectors. The deeper narrative here is about convergence: as tokenized assets and institutional crypto products gain traction, the lines between TradFi and DeFi blur, creating a single, interconnected risk pool.For investors, the takeaway is clear. The old playbooks are obsolete. You can no longer view crypto in isolation; its fate is now inextricably linked to the fortunes and fears of the traditional tech giants, making portfolio diversification a far more complex puzzle than it was just a few years ago.

#Market Volatility

#Cryptocurrency

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#AI

#IBM