On December 25, on-chain whale trader Garrett Jin noted that last week’s sell-off in U.S. AI stocks stemmed primarily from two factors: sell-side analysts’ emotional misinterpretation of Broadcom’s CEO comments, and the narrative around the extreme ultraviolet (EUV) lithography “Manhattan Project.” These two points, he added, are essentially noise over the next 6-12 months. This week, AI stocks rebounded broadly — including previously underperforming names like Oracle, which still faces debt headwinds. This typically signals the end of panic selling and the formation of a temporary bottom. The Nasdaq 100 has fully recouped losses spurred by those “bearish headlines.” Notably, Ethereum (ETH) has a distinct tech-stock beta (same directional movement, higher volatility), so its correlation with the Nasdaq 100 remains elevated.
