Amazon CEO Andy Jassy says the company may eventually sell its Trainium AI chips directly to outside customers, not just through AWS, which would put Amazon in more direct competition with Nvidia. "There's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future," Jassy wrote in his annual shareholder letter Thursday. He also revealed the company's chip business is already running at more than $20 billion annually, with demand so strong that current and even future generations are largely spoken for. Quartz reports: Access to Amazon's chips is currently limited to Amazon Web Services, with customers paying for cloud-based usage rather than owning any physical hardware. Selling to AWS and external customers alike, as standalone chipmakers do, would put annual revenue at around $50 billion, up from the $20 billion the company estimates for the year, Jassy said. The $20 billion figure spans three product lines: Trainium, the AI accelerator chip; Graviton, a general-purpose processor; and Nitro, a chip that helps run Amazon's EC2 server instances. All three are growing at triple-digit rates year over year, Jassy claimed in his letter.

Jassy said demand for Trainium has outpaced supply at each generation. Trainium2 is essentially unavailable, with its entire allocated capacity spoken for. Trainium3 started reaching customers in early 2026, and reservations have filled nearly all available supply. Even Trainium4 -- which is not expected to reach wide release for another year and a half -- has substantial pre-orders committed. Jassy argued that a full-scale Trainium rollout could shave tens of billions off annual capital costs while meaningfully widening profit margin.

Anthropic's making a big and sudden change — and connecting its Claude AI to third-party agentic tools "is about to get a lot more expensive," writes the Verge: Beginning April 4th at 3PM ET, users will "no longer be able to use your Claude subscription limits for third-party harnesses including OpenClaw," according to an email sent to users on Friday evening. Instead, if users want to use OpenClaw with Claude, they'll have to use a "pay-as-you-go option" that will be billed separate from their Claude subscription.
Anthropic's announcement added these extra usage bundles are "now available at a discount." Users can also try Anthropic's API, notes VentureBeat, "which charges for every token of usage rather than allowing for open-ended usage up to certain limits, as the Pro and Max plans have allowed so far. " The technical reality, according to Anthropic, is that its first-party tools like Claude Code, its AI vibe coding harness, and Claude Cowork, its business app interfacing and control tool, are built to maximize "prompt cache hit rates" — reusing previously processed text to save on compute. Third-party harnesses like OpenClaw often bypass these efficiencies... [Claude Code creator Boris Cherny explained on X that "I did put up a few PRs to improve prompt cache hit rate for OpenClaw in particular, which should help for folks using it with Claude via API/overages."] Growth marketer Aakash Gupta observed on X that the "all-you-can-eat buffet just closed," noting that a single OpenClaw agent running for one day could burn $1,000 to $5,000 in API costs. "Anthropic was eating that difference on every user who routed through a third-party harness," Gupta wrote. "That's the pace of a company watching its margin evaporate in real time."

However, Peter Steinberger, the creator of OpenClaw who was recently hired by OpenAI, took a more skeptical view of the "capacity" argument."Funny how timings match up," Steinberger posted on X. "First they copy some popular features into their closed harness, then they lock out open source." Indeed, Anthropic recently added some of the same capabilities that helped OpenClaw catch-on — such as the ability to message agents through external services like Discord and Telegram — to Claude Code...

User @ashen_one, founder of Telaga Charity, voiced a concern likely shared by other small-scale builders: "If I switch both [OpenClaw instances] to an API key or the extra usage you're recommending here, it's going to be far too expensive to make it worth using. I'll probably have to switch over to a different model at this point."

"I know it sucks," Cherny replied. "Fundamentally engineering is about tradeoffs, and one of the things we do to serve a lot of customers is optimize the way subscriptions work to serve as many people as possible with the best mode..." OpenAI appears to be positioning itself as a more "harness-friendly" alternative, potentially using this moment as a customer acquisition channel for disgruntled Claude power users.

By restricting subscription limits to their own "closed harness," Anthropic is asserting control over the UI/UX layer. This allows them to collect telemetry and manage rate limits more granularly, but it risks alienating the power-user community that built the "agentic" ecosystem in the first place. Anthropic's decision is a cold calculation of margins versus growth. As Cherny noted, "Capacity is a resource we manage thoughtfully." In the 2026 AI landscape, the era of subsidized, unlimited compute for third-party automation is over. For the average user on Claude.ai, the experience remains unchanged; for the power users running autonomous offices, the bell has tolled.

Van Allen Probe A, a 1,300-pound (600 kg) NASA satellite launched in 2012 to study Earth's radiation belts, is expected to re-enter Earth's atmosphere this week. While most of it is expected to burn up during descent, "some components may survive," reports the BBC. "The space agency said there is a one in 4,200 chance of being harmed by a piece of the probe, which it characterized as 'low' risk." From the report: The spacecraft is projected to re-enter around 19:45 EST (00:45 GMT) on Tuesday the U.S. Space Force predicted, according to Nasa, though there is a 24-hour margin of "uncertainty" in the timing. [...] The spacecraft and its twin, Van Allen Probe B, were on a mission to gather unprecedented data on Earth's two permanent radiation belts. It was not immediately clear where in Earth's atmosphere the satellite is projected to re-enter. NASA and the U.S. Space Force has said it will monitor the re-entry and update any predictions. [...] Van Allen Probe B is not expected to re-enter the Earth's atmosphere before 2030.

An anonymous reader shares a column: I'm going to take the diplomatic hat off here and say with brutal honesty: basically everybody in the music business hates Spotify except for the people who work there. It's a platform that sucks artists for everything they have, it actively prevents community building, and, despite all of that, the platform still struggles to maintain a healthy profit margin.

The streaming business model is fundamentally broken. And eventually, its demise will become more and more obvious to recognize. I'll break down exactly why the DSP era is coming to a grinding halt, why the major labels are quietly terrified, and why the artists who don't pivot now are going to go down with the ship.

[...] Jimmy Iovine put it bluntly: "The streaming services have a bad situation, there's no margins, they're not making any money." This model only works for Apple, Amazon, and Google, because they don't need their music platforms to be wildly profitable. Amazon uses music as a loss-leader to keep you paying for Prime. Apple uses it to sell $1,000 iPhones. As for Spotify, or any standalone music streaming company, they're kind of screwed. And guess what -- when the platform's margins are structurally squeezed, guess who gets squeezed first? The artists.

[...] What if Jimmy is right? If the DSPs are "minutes away from obsolete," what replaces them? Well, I'm not sure the DSPs are going to disappear overnight, but if you're an artist or a manager trying to sustain yourself in this evolving music economy, the answer is direct ownership. The artists who will survive the next five years are the ones who are quietly shifting their focus away from the "ATM Machine."

They are building their own cultural hangars. They are capturing phone numbers on Laylo. They are driving fans to private Discord servers. They are focusing on ARPF (Average Revenue Per Fan) through high-margin merch, vinyl, and hard tickets, rather than begging for fractions of a penny from a playlist placement. We are witnessing the death of the "Mass Audience" and the birth of the "Micro-Community."

Anthropic has released Claude Sonnet 4.6, the first upgrade to its mid-tier AI model since version 4.5 arrived in September 2025. The new model features a "1M token context window" and delivers a "full upgrade of the model's skills across coding, computer use, long-context reasoning, agent planning, knowledge work, and design." From Anthropic: Sonnet 4.6 brings much-improved coding skills to more of our users. Improvements in consistency, instruction following, and more have made developers with early access prefer Sonnet 4.6 to its predecessor by a wide margin. They often even prefer it to our smartest model from November 2025, Claude Opus 4.5.

Performance that would have previously required reaching for an Opus-class model -- including on real-world, economically valuable office tasks -- is now available with Sonnet 4.6. The model also shows a major improvement in computer use skills compared to prior Sonnet models. The free tier now uses Sonnet 4.6 by default and with "file creation, connectors, skills, and compaction" included.

Telecom operators planning aggressive fiber and fixed wireless broadband rollouts in 2026 face a serious supply problem -- DRAM and NAND memory prices for consumer applications have surged more than 600% over the past year as higher-margin AI server segments absorb available capacity, according to Counterpoint Research.

Routers, gateways and set-top boxes have been hit hardest, far worse than smartphones; prices for "consumer memory" used in broadband equipment jumped nearly 7x over the last nine months, compared to 3x for mobile memory. Memory now makes up more than 20% of the bill of materials in low-to-mid-end routers, up from around 3% a year ago. Counterpoint expects prices to keep rising through at least June 2026. Telcos that were also looking to push AI-enabled customer premises equipment -- requiring even more compute and memory content -- face additional headwinds.

Elon Musk told podcast host Dwarkesh Patel and Stripe co-founder John Collison that space will become the most economically compelling location for AI data centers in less than 36 months, a prediction rooted not in some exotic technical breakthrough but in the basic math of electricity supply: chip output is growing exponentially, and electrical output outside China is essentially flat.

Solar panels in orbit generate roughly five times the power they do on the ground because there is no day-night cycle, no cloud cover, no atmospheric loss, and no atmosphere-related energy reduction. The system economics are even more favorable because space-based operations eliminate the need for batteries entirely, making the effective cost roughly 10 times cheaper than terrestrial solar, Musk said. The terrestrial bottleneck is already real.

Musk said powering 330,000 Nvidia GB300 chips -- once you account for networking hardware, storage, peak cooling on the hottest day of the year, and reserve margin for generator servicing -- requires roughly a gigawatt at the generation level. Gas turbines are sold out through 2030, and the limiting factor is the casting of turbine vanes and blades, a process handled by just three companies worldwide.

Five years from now, Musk predicted, SpaceX will launch and operate more AI compute annually than the cumulative total on Earth, expecting at least a few hundred gigawatts per year in space. Patel estimated that 100 gigawatts alone would require on the order of 10,000 Starship launches per year, a figure Musk affirmed. SpaceX is gearing up for 10,000 launches a year, Musk said, and possibly 20,000 to 30,000.

Apple's long-standing dominance over its electronics supply chain is eroding as AI companies outbid the iPhone maker for critical components like chips, memory and specialized glass fiber, giving suppliers the leverage to demand that Apple pay more. CEO Tim Cook acknowledged the pressure during a Thursday earnings call, noting constraints in chip supplies and significant increases in memory prices.

Nvidia has overtaken Apple as TSMC's largest customer, CEO Jensen Huang said on a podcast; Apple had held that position by a wide margin for years. DRAM prices are set to quadruple from 2023 levels by year-end and NAND prices will more than triple, according to TechInsights.

The firm estimates Apple could pay $57 more for memory in the base iPhone 18 due this fall compared to the base iPhone 17 currently on sale -- a significant hit on a device that retails for $799.

"There's one big bright spot in the fight against climate change that most people never think about," reports the Washington Post. "It could prevent nearly half a degree of global warming this century, a huge margin for a planet that has warmed almost 1.5 degrees Celsius and is struggling to keep that number below 2 degrees..." [M]ore than 170 countries — including the U.S. — have agreed to act on this one solution. That solution: phasing out hydrofluorocarbons (HFCs), a group of gases used in refrigerators, air conditioners and other cooling systems that heat the atmosphere more than almost any other pollutant on Earth. Pound for pound, HFCs are hundreds or even thousands of times better at trapping heat than carbon dioxide.

Companies are replacing HFCs with new gases that trap much less heat. If you buy a new fridge or AC unit in the United States today, it'll probably use one of these new refrigerants — and you're unlikely to notice the difference, according to Francis Dietz, a spokesperson for the Air-Conditioning, Heating and Refrigeration Institute, a trade group representing U.S. HVAC manufacturers... But that invisible transition is one of the most important short-term tactics to keep Earth's climate from going catastrophically off-kilter this century. HFCs are powerful super-pollutants, but the most common ones break down in the atmosphere within about 15 years. That means stopping emissions from HFCs — and other short-lived super-pollutants such as methane — is like pulling an emergency brake on climate change.

"It's really the fastest, easiest and, some would say, the only way to slow the rate of warming between now and 2050," said Kiff Gallagher, executive director of the Global Heat Reduction Initiative, a business that advises companies and cities on cutting greenhouse gas emissions. The only other solution that comes close to the speed and scale of slashing HFCs would be dimming the sun, a much more controversial and potentially dangerous option... [P]hasing out HFCs now "would buy us a little bit of time to develop other solutions that maybe take longer to implement," said Sarah Gleeson, a climate solutions research manager at Project Drawdown, a nonprofit that models how much different strategies would slow climate change. It could also keep the planet from crossing dangerous climate tipping points this century.

alternative_right shares a report from Phys.org: New findings from NASA's Perseverance rover have revealed evidence of wave-formed beaches and rocks altered by subsurface water in a Martian crater that once held a vast lake -- considerably expanding the timeline for potential habitability at this ancient site. In an international study led by Imperial College London, researchers uncovered that the so-called 'Margin unit' in Mars's Jezero crater preserves evidence of extensive underground interactions between rock and water, as well as the first definitive traces of an ancient shoreline.

These are compelling indicators that habitable, surface water conditions persisted in the crater (home to a large lake around 3.5 billion years ago) further back in time than previously thought. "Shorelines are habitable environments on Earth, and the carbonate minerals that form here can naturally seal in and preserve information about the ancient environment," said lead author Alex Jones, a Ph.D. researcher in the Department of Earth Science and Engineering (ESE) at Imperial. The findings have been published in the Journal of Geophysical Research: Planets.

Ubisoft is canceling game projects, shutting down studios and cutting its guidance as the Assassin's Creed maker restructures its business into five units. From a report: The French gaming firm expects earnings before interest and tax to be a loss of $1.2 billion the fiscal year 2025-2026 as a result of the restructuring, driven by a one-off writedown of about $761 million, the company said in a statement on Wednesday.

Ubisoft also expects net bookings of around $1.76 billion for the year, with a $386 million gross margin reduction compared to previous guidance, it said. Six games, including a remake of Prince of Persia The Sands of Time, have been discontinued and seven other unidentified games are delayed, the company said. The measures are part of a broader plan to streamline operations, including closing studios in Stockholm and Halifax, Canada. Ubisoft said it will have cut at least $117 million in fixed costs compared to the latest financial year by March, a year ahead of target, and has set a goal to slash an additional $234 million over the next two years.

A PwC survey of more than 4,500 CEOs found that over half report no revenue growth or cost savings from their AI investments so far, despite massive spending. Of the 4,454 business leaders surveyed, only 12% saw both lower costs and higher revenue, while 56% saw neither benefit. "26% saw reduced costs, but nearly as many experienced cost increases," adds The Register. From the report: AI adoption remains limited. Even in top use cases like demand generation (22 percent), support services (20 percent), and product development (19 percent), only a minority are deploying AI extensively. Last year, a separate PwC study found that only 14 percent of workers indicated they were using generative AI daily in their work. Despite the CEOs' repsonses, PwC concludes more investment is required. It claims that "isolated, tactical AI projects" often don't deliver measurable value, and that tangible returns instead come from enterprise-wide deployments consistent with business strategy. [...]

In terms of the broader picture, PwC says it found CEO confidence has hit a five-year low, with only 30 percent optimistic about revenue growth (down from 38 percent last year). This points to growing geopolitical risk and intensifying cyber threats, as well as uncertainty over the benefits and downsides of AI. Unsurprisingly, concern remains over tariffs as the Trump administration continues its erratic approach to policy, with almost a third of company chiefs saying tariffs are expected to reduce their company's profit margin in the year ahead. In the U.S., 22 percent indicate their corporation is highly or extremely exposed to tariffs. PwC warns that companies avoiding major investments due to geopolitical uncertainty underperform peers by two percentage points in growth and three points in profit margins.

Reports suggest ASUS has effectively ended production of NVIDIA's RTX 5070 Ti and 5060 Ti 16GB GPUs due to a severe memory crunch driven by AI infrastructure demand, even as NVIDIA insists it's still shipping all GeForce SKUs. YouTube channel Hardware Unboxed broke the news in its most recent video where it states ASUS "explicitly" told them the RTX 5070 Ti is "currently facing a supply shortage" and has "placed the model into end of life status." The shift leaves PC gamers facing fewer high-VRAM options just as modern games increasingly demand more than 8GB. Engadget reports: Hardware Unboxed also spoke to retailers in Australia, who told the channel the 5070 Ti is "no longer available to purchase from partners and distributors," adding they expect that to be the case throughout at least the first quarter of the year. The 5060 Ti 16GB "is almost done as well," with ASUS stating it no longer plans to produce that model going forward either. Both GPUs are 16GB models, making them more expensive to produce in the current economic climate. And while there might be some hope of the 5070 Ti and 5060 Ti 16GB returning later this year, the channel suggests both are unlikely to make a comeback. NVIDIA will reportedly focus on 8GB models like the RTX 5050, 5060, and 5060 Ti 8GB, with the 12GB 5070 set to stick around for now. The 5080 and 5090 are seemingly safe as well, as more expensive, higher margin models, they offer more space for manufacturers to absorb component price increases.

"Demand for GeForce RTX GPUs is strong, and memory supply is constrained. We continue to ship all GeForce SKUs and are working closely with our suppliers to maximize memory availability," a NVIDIA spokesperson told Engadget. The company did not say 5070 Ti and 5060 Ti 16GB are going out of production. However, it also didn't confirm they're sticking around either. ASUS did not immediately respond to Engadget's comment request.

An anonymous reader shares a report: Global temperatures soared in 2025, but a NASA statement published Wednesday alongside its latest benchmark annual report makes no reference to climate change, in line with President Donald Trump's push to deny the reality of planetary heating as a result of human activities.

That marks a sharp break from last year's communications, issued under the administration of Democrat Joe Biden, which stated plainly: "This global warming has been caused by human activities" and has led to intensifying "heat waves, wildfires, intense rainfall and coastal flooding."

Last year's materials also featured lengthy quotes from the then-NASA chief and a senior scientist and included graphics and a video. By contrast, this year's release only runs through a few key figures, and amounts to a handful of paragraphs. According to the US space agency, Earth's global surface temperature in 2025 was slightly warmer than in 2023 -- albeit within a margin of error -- making it effectively tied as the second-hottest year on record after 2024.

Samsung Electronics and SK hynix are projected to raise server memory prices by up to 70% in early 2026, according to Korea Economic Daily. "Combined with 50 percent increases in 2025, this could nearly double prices by mid-2026," reports the Register. From the report: The two Korean giants, alongside US-based Micron, dominate global memory production. All three are reallocating advanced manufacturing capacity to high-margin server DRAM and HBM chips for AI infrastructure, squeezing supply for PCs and smartphones. Financial analysts have raised their earnings forecasts for the firms in response, as they look to benefit from the AI infrastructure boom that is driving up prices for everyone else. Taiwan-based market watcher TrendForce reports that conventional DRAM prices already jumped 55-60 percent in a single quarter.

Yet despite the focus on server chips, supply of these components continues to be strained too, with supplier inventories falling and shipment growth reliant on wafer output increases, according to TrendForce. As a result, it forecasts that server DRAM prices will jump by more than 60 percent in the first quarter of 2026. Prior to Christmas, analyst IDC noted the "unprecedented" memory chip shortage and warned this would have knock-on effects for both hardware makers and end users that may persist well into 2027.

Axios reports that venture capitalist Alex Davis is warning that a speculative rush to build data centers without committed tenants could trigger a financing crunch by 2027-2028.

"This critique is coming from inside the AI optimist camp," notes Axios, as Davis' firm, Disruptive, "recently led a large investment in AI chipmaker Groq, which then signed a $20 billion licensing deal with Nvidia. It's also backed such unicorn startups as Reflection AI, Shield AI and Gecko Robotics."

Here's what Davis had to say in his investor letter this morning: "While I continue to believe the ongoing advancements in AI technology present 'once in a lifetime' investment opportunities, I also continue to see risks and reason for caution and investment discipline. For example, we are seeing way too many business models (and valuation levels) with no realistic margin expansion story, extreme capex spend, lack of enterprise customer traction, or overdependence on 'round-trip' investments -- in some cases all with the same company. I am also deeply concerned about the 'speculative' data center market. The 'build it and they will come' strategy is a trap. If you are a hyperscaler, you will own your own data centers. We foresee a significant financing crisis in 2027-2028 for speculative landlords. We want to back theowner/users, not the speculative landlords, and we are quite concerned for their stress on the system." The full letter can be found here.

The global airline industry is on track to post an all-time profit high of nearly $40 billion in 2025, according to trade group IATA, surpassing the pre-pandemic 2019 figure of $26 billion, but carriers are still managing a net margin of just 4% -- roughly $7.90 per passenger. Economist adds: Not everything has been in the ascent. European and North American airlines, which account for three-fifths of the industry's net profits, have had to contend with circuitous long-haul routes to avoid Russian airspace since the start of the war in Ukraine. This year parts of the Middle East became no-go zones after Israel's strike on Iran in June. America's airlines were hit by a government shutdown that stopped federal workers from travelling and kept unpaid air-traffic controllers at home, disrupting flights.

What is more, despite a drop in fuel prices, which account for 25-30% of airlines' operating expenses, other costs have risen. Airlines flew 4.8 billion passengers in 2024, beating the 2019 peak, and that figure likely reached 5 billion in 2025 as combined revenues topped $1 trillion for the first time and load factors hit a record of nearly 84%.

But the industry is flying older planes because Boeing and Airbus can't deliver enough new ones. The duopoly shipped under 1,400 aircraft in 2025, well below the 2018 record of just over 1,600. Boeing has struggled since two fatal 737 MAX crashes in late 2018 and early 2019 led to a 20-month grounding, and a fuselage panel blew off another 737 MAX mid-flight in early 2024. Airbus cut its 2025 delivery target from 820 to 790 in early December due to a supplier's production flaw, and Pratt & Whitney engine problems have grounded a third of the global A320neo fleet.

IATA estimates the aircraft shortage won't resolve before 2031 at the earliest, and the global fleet's average age has climbed to 15 years from 13 in 2019. Annual fuel efficiency gains have slowed from about 2% to 0.3% in 2025, and an IATA and Oliver Wyman report pegs the cost of aging fleets -- extra fuel, repairs, spare parts -- at over $11 billion in 2025.

The global smartphone and PC markets face potential contractions of up to 5.2% and 8.9% respectively in 2026, according to downside risk scenarios from IDC that trace the problem to memory chip manufacturers shifting production capacity away from consumer electronics toward AI data centers. Samsung Electronics, SK Hynix and Micron Technology have pivoted their limited cleanroom space toward high-bandwidth memory for AI servers, restricting supply of the conventional DRAM and NAND used in phones and laptops.

IDC expects 2026 DRAM supply growth to hit 16% year-on-year, below historical norms. The smartphone industry's decade-long trend of bringing flagship features to affordable devices is reversing. Memory represents 15-20% of the bill of materials for mid-range phones, and thin-margin vendors like Xiaomi, Realme and Transsion will bear the brunt. Apple and Samsung have long-term supply agreements securing components up to 24 months ahead. PC vendors including Lenovo, Dell, HP, Acer and ASUS have warned clients of 15-20% price increases heading into the second half of 2026.

Electrek reports: EV and battery supply chain research specialists Benchmark Mineral Intelligence reports that 2.0 million electric vehicles were sold globally in November 2025, bringing global EV sales to 18.5 million units year-to-date. That's a 21% increase compared to the same period in 2024. Europe was the clear growth leader in November, while North America continued to lag following the expiration of US EV tax credits. China, meanwhile, remains the world's largest EV market by a wide margin. Europe's EV market jumped 36% year-over-year in November 2025, with BEV sales up 35% and plug-in hybrid (PHEV) sales rising 39%. That brings Europe's total EV sales to 3.8 million units for the year so far, up 33% compared to January-November 2024... In North America, EV sales in the US did tick up month-over-month in November, following a sharp October drop after federal tax credits expired on September 30, 2025. Brands including Kia (up 30%), Hyundai (up 20%), Honda (up 11%), and Subaru (232 Solterra sales versus just 13 the month before) all saw gains, but overall volumes remain below levels when the federal tax credit was still available... [North America shows a -1% drop in EV sales from January to November 2025 vs. January to November 2024]

Year-to-date, EV sales in China are up 19%, with 11.6 million units sold. One of the biggest headlines out of China is exports. BYD reported a record 131,935 EV exports in November, blowing past its previous high of around 90,000 units set in June. BYD sales in Europe have jumped more than fourfold this year to around 200,000 vehicles, doubled in Southeast Asia, and climbed by more than 50% in South America...

"Overall, EV demand remains resilient, supported by expanding model ranges and sustained policy incentives worldwide," said Rho Motion data manager Charles Lester.
Beyond China, Europe, and North America, the rest of the world saw a 48% spike in EV sales in 2025 vs the same 11 months in 2024, representing 1.5 million EVs sold.

"The takeaway: EV demand continues to grow worldwide," the article adds, "but policy support — or the lack thereof — is increasingly shaping where this growth shows up."

A week ago Bitcoin was at $93,714. Saturday it dropped to $85,300.

Late Thursday, market researcher Ed Yardeni blamed some of Thursday's stock market sell-off on "the ongoing plunge in bitcoin's price," reports Fortune: "There has been a strong correlation between it and the price of TQQQ, an ETF that seeks to achieve daily investment results that correspond to three times (3x) the daily performance of the Nasdaq-100 Index," [Yardeni wrote in a note]. Yardeni blamed bitcoin's slide on the GENIUS Act, which was enacted on July 18, saying that the regulatory framework it established for stablecoins eliminated bitcoin's transactional role in the monetary system. "It's possible that the rout in bitcoin is forcing some investors to sell stocks that they own," he added... Traders who used leverage to make crypto bets would need to liquidate positions in the event of margin calls.

Steve Sosnick, chief strategist at Interactive Brokers, also said bitcoin could swing the entire stock market, pointing out that it's become a proxy for speculation. "As a long-time systematic trader, it tells me that algorithms are acting upon the relationship between stocks and bitcoin," he wrote in a note on Thursday.