Prominent Trader: Market Correction Primarily Focused on AI Stocks, BTC and ETH Show Resilience

July 30th. Renowned trader Doctor Profit announced that on July 18th, he decided to take profit by closing his Bitcoin short position established near $120,000, while maintaining his short position in stocks. Although he still expects a potential market downturn, he has started dollar-cost averaging to buy BTC and ETH.

The current correction is mainly focused on the AI sector, with several AI stocks experiencing significant declines. Despite this, BTC remains stable within its range, ETH is showing strong resilience, and the impact of the S&P 500 on BTC is currently relatively limited. While it is still too early to draw conclusions, this may support his initial assessment that this round of major correction or consolidation is focused on AI stocks rather than a large-scale sell-off of BTC and ETH.

Doctor Profit mentioned that his short positions in stocks currently include MicroStrategy (-64.8%), Coinbase (-51.8%), Sandisk (-49.4%), Palantir (-40.6%), Netflix (-34.3%), IBM (-32.2%), Microsoft (-28.2%), and NVIDIA (-8.6%), resulting in significant unrealized gains. Apple (+26.2%) and the S&P 500 (+4%) are currently unfavorable to his positions. He further added that he invested in Coinbase last week, so the current Coinbase short position serves mainly as a hedge, and he plans to gradually unwind the position over the next few weeks and take full profit.