Do you remember a month or two ago, how often you would see this kind of view: buying Bitcoin is not as good as buying AI semiconductors.

The argument was that even if you buy Bitcoin exactly at the lowest point, in the next cycle it would at most rise only 2–3x, and the annualized return would be at most 50%.
Meanwhile, blindly buying storage and semiconductors could double within a few months, and the return rate would absolutely dwarf Bitcoin.
When large numbers of people develop similar ideas and chase rallies while also panic-selling across two completely different types of assets, that’s an extremely dangerous signal.
This round of AI hardware deleveraging is meant to wash out these gamblers’ chips, and create sufficient momentum for the next leg up—more washing is a good thing.
By the time these gamblers can’t hold up against losses anymore, their leverage is about to get liquidated, and they get panicked into cutting losses and fully exiting, the market reversal will be coming.