#GlobalTechSell-OffHitsRiskAssets

The markets are currently experiencing a significant "risk-off" environment. What started as a focused correction in high-flying technology stocks has snowballed into a broader retreat from risk assets—including cryptocurrencies and commodities—as we move through the first week of February 2026.
AI Anxiety & "Substitution" Fears
The primary trigger for this week’s rout was a sharp repricing of the AI narrative.
Market sentiment shifted following the release of new AI automation tools. Investors are no longer viewing AI solely as a "productivity booster" but are now fearing it will cannibalize existing software and services business models.
Skepticism is mounting over the massive capital expenditures (hundreds of billions of dollars) being funneled into AI infrastructure. Markets are now ruthlessly punishing companies that cannot show immediate, tangible revenue from these investments.
The "sell-off" is no longer contained to Silicon Valley. As tech giants weigh down the major indices, a broader liquidiation is occurring:
Bitcoin has faced intense pressure, briefly dipping near the $70,000 mark (and at one point falling roughly 50% from its October record highs). Higher-beta assets like Ether and BNB have seen even steeper declines as traders seek liquidity.
In a surprising move, Silver plummeted by as much as 17% and Gold dropped significantly this week. While usually safe havens, they are currently caught in the crossfire of a general "sell everything" sentiment.
South Korea’s Kospi tumbled nearly 4% while the Nasdaq and S&P 500 have seen their worst streaks in months.
We are seeing a rotation rather than a total market collapse. Investors are moving out of "crowded" momentum trades (Tech/AI) and into more defensive sectors. However, the speed of the decline in software and semiconductors has created a "brittle" market where even positive earnings are being ignored in favor of fears over high spending and future guidance.
‍$SOL $BNB