Goldman Sachs: AI trading sees July-style deleveraging resurface, storage and data center sectors most attractive

According to Reuters, South Korea’s KOSPI has dropped 30% from its June 19 peak, as the stock market frenzy driven by the AI boom and leveraged funds has swiftly turned into pessimism. The South Korean government had planned to eliminate the "Korea Discount" by introducing more investment tools and improving corporate governance, but sharp market volatility has put the effectiveness of these policies and investors’ risk tolerance under scrutiny. South Korean regulators greenlit single-stock leveraged ETFs for launch on May 27, requiring investors to complete only a one-hour training session and deposit at least 10 million won to participate. During the same period, Samsung Electronics and SK Hynix each hit a $1 trillion market cap, pushing the KOSPI to more than double its October 2023 level and cross the 8,000-point mark. Retail investors borrowed heavily to chase the AI rally, lifting the KOSPI’s margin balance to a record 29.8 trillion won on June 24, up roughly 75% year-to-date. With Samsung and SK Hynix together accounting for over 53% of the KOSPI’s total market value, related leveraged products have further amplified market swings. In early July, South Korea’s volatility index VKOSPI surged to 97.99, the highest level since the index’s launch in 2009. Citigroup estimated on July 28 that retail investors’ losses on leveraged ETFs reached $38.7 billion. The market correction has also brought social strain. A Seoul psychiatrist said the number of his patients with stock investment-related issues rose from 7 to 8 per day last year to an average of 11 per day since June this year. Busan police arrested a man in his 20s suspected of stabbing a YouTuber, who allegedly blamed the content creator for his stock losses. South Korean authorities have since tightened restrictions on individual investments in leveraged ETFs. Analysts note that the excessive volatility could also undermine South Korea’s goal of being included in the MSCI Developed Markets Index.

According to a New York Post report, U.S. Democratic Representative Rashida Tlaib’s latest financial disclosure shows her roughly $1.2 million retirement investment account includes up to $15,000 in Grayscale Ethereum ETF and up to $15,000 in Bitcoin ETF. Both holdings are ETFs, not direct ownership of BTC or ETH. The disclosure documents indicate the account holds a total of 41 investments. Since U.S. lawmakers only disclose assets by amount brackets, Tlaib’s exact holdings in the crypto ETFs cannot be determined. Tlaib previously voted against the CLARITY Act, which supports the crypto industry, and backed a resolution aimed at banning "crypto corruption". The CLARITY Act is expected to be considered by the Senate in September after Congress returns from its recess.

According to HTX market data, as Bitcoin fell below $77,000, the cryptocurrency market has entered a pullback, with altcoins generally facing selling pressure and declining. Specifically: TAC is currently priced at $0.001672, down 40.86% in 24 hours; FHE trades at $0.01978, down 30.03% over 24 hours; SQD stands at $0.03, down 29.01% in 24 hours; PTB is priced at $0.0007364, down 27.11% in 24 hours; INX is at $0.006619, down 26.43% over 24 hours; BASED trades at $0.07328, down 25.35% in 24 hours; SWARMS is priced at $0.007254, down 24.80% in 24 hours; BEAT is at $0.1342, down 24.18% over 24 hours.

Grayscale Research Head Zach Pandl wrote in a post that while he generally advises investors against trying to time the market, judging from three aspects—structural adoption trends, market cycles, and macro risks—the current Bitcoin price may offer a favorable entry point for investors with a long-term investment horizon. Grayscale noted that sustained growth in government debt, expanding applications of blockchain technology in financial services, and generational shifts in portfolio construction all indicate Bitcoin’s long-term adoption trend remains solid. The current Bitcoin bear market has lasted roughly 10 months, while previous bear markets typically ran 11 to 12 months, suggesting the market may be in the late stage of a bear cycle. The macro environment remains a key source of uncertainty: if the Federal Reserve raises interest rates soon, Bitcoin could fall further; if it holds rates steady, the market may have already hit bottom. Grayscale added that structural adoption, cycle positioning, and overall macro outlook are currently relatively favorable, though future performance remains uncertain.

Recently, rumors have emerged in the crypto market that US President Donald Trump is "about to officially launch a new token". The rumors claimed that a newly created Robinhood Chain wallet received 290 ETH and interacted with a "Truth Coin" contract, but no wallet address, controller proof, official contract, or project announcement was provided. Eric Trump, Donald Trump’s second son, subsequently explicitly denied the rumors, stating: "This is a total joke, the news is completely false. No one is going to launch any type of token, and anyone who suggests otherwise is committing fraud." As of now, neither the Trump family nor Robinhood has announced the launch of any related token. Notably, a filing from the US Office of Government Ethics shows that Trump’s investment portfolio purchased Robinhood (HOOD) stocks worth between $1,001 and $15,000 on June 3. HOOD closed at $82.85 on that day, and stood at $108.13 on August 21, representing an approximate 30.5% increase in the period. If the entire position is still held and calculated based on the approximate closing price of that day, the unrealized profit would be roughly $305 to $4,577, though the actual transaction price and subsequent holdings have not been disclosed.

According to official announcements, Predict.fun’s Dota 2 prediction event The Predict International has launched markets for the loser’s bracket final. As the tournament enters its final phase, the platform will roll out additional prediction markets for the grand finals, with higher overall AP rewards per market. Given the short interval between the loser’s bracket final and the grand finals, users may have only a limited window to complete predictions and lock in their shares once the grand finals markets go live. Those planning to join the final round should closely monitor the event page. The total rewards for The Predict International amount to 100,000 USDT and 5,000,000 Predict Points.