The reason for Bitcoin's sharp drop has been identified—it was dragged down by an abrupt and inexplicable crash in U.S. stocks, possibly triggered by high-leverage ETFs and AI uncertainty.

On June 25, U.S. stocks opened higher but then fell during the evening session. Without any major news, the Nasdaq 100 dropped 1,000 points in 27 minutes, and the S&P 500 erased $1 trillion in market cap, quickly turning from +1% to -3% after the open.

Looking at pre-market information, the U.S. PCE inflation rose to 4.1% (the highest since April 2023), compounded by Apple announcing price increases of up to 25% for Macs and iPads due to rising AI chip costs, causing Apple's stock to instantly fall nearly 6% and wiping out $220 billion in market cap, triggering panic selling. However, these news items alone do not seem enough to cause such a rapid market decline.

The Kobeissi Letter believes that the widespread presence of high-leverage ETFs in the market, AI uncertainty, and massive crypto liquidations are the main reasons for increased volatility, and it expects market volatility to persist.$TSLAB $SPCXB $BTC
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