Analysis: As Long as the Stock Sell-Off Persists, the Risk of Further De-Risking in Crypto Markets Remains

Nov. 6: CryptoQuant analyst Axel Adler Jr. said tech stocks suffered their largest single-day drop since the COVID-19 pandemic, with the Nasdaq 100 falling 6.36% to 26,630 points, the S&P 500 tech sector down 7.3%, and the Philadelphia Semiconductor Index down 12%. Democrats who won gubernatorial races in Texas, Ohio and Georgia pledged to pause new data center construction, triggering investor concerns about a slowdown in AI infrastructure expansion and dealing a severe blow to companies that depend on AI infrastructure growth.

On the same day, the VIX rose from 16.6 to 28.2, up nearly 70% in a single day, indicating that investors expect greater volatility in US stocks ahead. Adler Jr. said the sharp swings in US stocks could prompt funds to cut positions to control risk, thereby intensifying the equity sell-off and putting further pressure on risk assets such as bitcoin. After rebounding to $80,000, bitcoin came under pressure and fell back to $75,000. He said that stabilization in the Nasdaq and a pullback in the VIX would signal an easing of external pressure; as long as the stock market sell-off continues, the risk of further de-risking in the crypto market remains.