2025-12-27 07:24:34

The performance of AI tokens has not been looking good lately. Last month alone, they dropped by 24.9%, and since the beginning of the year, they've been cut in half—down 74.6%. Isn’t that tragic? But this is not even the worst part. The entire altcoin sector is crying out in pain, with the total market cap dropping from 1.77 trillion to 1.16 trillion, evaporating over 600 billion.

What’s happening to the market? Liquidity is shrinking, and trading volume has decreased by 20% year-over-year. Investors’ enthusiasm has been almost completely extinguished, and the rebound momentum is simply not there. This is not just a simple correction; confidence is gradually eroding.

There’s also a frightening piece of data. On the employment side, the labor force participation rate has fallen to 59.4%, with people exiting the labor market. Meanwhile, the S&P 500 has surprisingly risen by 17.8%. What does this indicate? AI technology is boosting the stock market, but the actual number of jobs created is far less than what’s being advertised. Technological revolutions often work this way—winner takes all.

Looking ahead, by 2026, clear signs of economic weakness may emerge. The risk of an AI bubble is not alarmist talk; it is indeed building up. For investors in the crypto market, now might be the time to seriously consider risk management. The recent decline in altcoins is just the beginning of the pressure release.

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digital_archaeologist

· 14h ago

Winner takes all, retail investors should just accept their fate.

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Gm_Gn_Merchant

· 14h ago

Is the halving still far away? Brother, this is just outrageous, 600 billion evaporated in the blink of an eye. --- Honestly, with such severe liquidity tightening, there's no chance for a rebound. --- The all-in winner-takes-all approach is old news; why do people still believe in it? --- Economic weakness in 2026? You should start running now, what are you waiting for? --- The AI bubble is indeed inflating, but who dares to go all-in and be completely bearish? --- With this wave of altcoins, it feels like the bottom hasn't been reached yet; let's keep observing. --- Employment rates are falling while the stock market is surging; this contrast is incredible. --- The most terrifying thing is the collapse of confidence, even more despairing than the decline itself. --- A 20% drop in trading volume—this really means no one is playing anymore.

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IronHeadMiner

· 15h ago

Ha, a 74.6% cut isn't enough, it has to be this much.

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StillBuyingTheDip

· 15h ago

Is a 50% cut not enough? This is testing our psychological defenses. --- 600 billion just evaporated, and I don't feel any pain. --- The phrase "winner takes all" is spot on; retail investors are always the ones getting eaten. --- Liquidity shrinks and trading volume declines—so is this what you call the "bottom"? Ha. --- S&P up 17.8%, AI coins down 74.6%—that stark contrast is truly ironic. --- Again talking about a crash in 2026? Can we at least survive until then? --- The word "loss of confidence" fits so perfectly; I feel a bit regretful about entering the market. --- People are exiting the labor market, yet AI is shining brightly in corporate earnings reports. Unbelievable. --- The recent drop in altcoins isn't just a correction; it's a purge. --- Still too greedy, insisting on betting on that last surge.

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