CZ: Crypto market decline driven by multiple factors including capital flows to AI, geopolitical tensions, and the four-year cycle.

U.S. stocks closed lower this week, weighed down by the ongoing slump in chip stocks, Bloomberg reported. While a University of Michigan survey showed long-term inflation expectations came in below forecasts, easing some concerns about interest rate hikes, that failed to offset selling pressure in chip stocks. Steve Sosnick, chief strategist at Interactive Brokers, noted the S&P 500 briefly turned positive during the session before erasing gains quickly, mirroring multiple failed rebound attempts investors have seen this week. Worries over AI valuations have spread from Asian markets to U.S. trading. Two prominent Chinese hedge funds said AI stocks are in a bubble that could burst. Shares of Japan’s SoftBank Group fell after The New York Times reported OpenAI may delay its IPO until 2027. South Korea’s KOSPI index triggered a trading halt for the second time this week due to a sharp drop in chip stocks, later paring some of those losses. In the U.S., data from Bank of America showed investors pulled capital out of U.S. stocks for the first time in three months, with outflows hitting $8.5 billion. Cameron Dawson, chief investment officer at Newedge Wealth, said a key question is whether the market has the patience to wait for returns on investments from hyperscale cloud providers. Richard Reyle, chief investment officer at Questar Capital Partners, said he will not buy large-cap tech or AI stocks at current levels, as their dominance is weakening; the Magnificent Seven and Bitcoin peaked nine months ago and have yet to recover. Separately, crude oil prices extended declines as tanker traffic through the Strait of Hormuz remained steady. Brian Jacobsen, chief economic strategist at Annex Wealth Management, said the peak in energy prices is behind us, leaving room for headline inflation to cool, though price pressures have not fully vanished.

According to HTX market data, Maple Finance (SYRUP) has surged over 31% in the past 24 hours, currently trading at $0.155.

European Central Bank (ECB) Executive Board member Isabel Schnabel warned that even if a U.S.-Iran peace deal reopens the Strait of Hormuz, price pressures could still run higher than expected. Speaking on Saturday, Schnabel said, "There are upside risks to inflation for food, goods and services," adding that energy price shocks could spill over into broader sectors. While she welcomed the recent decline in energy prices amid prospects of a U.S.-Iran peace deal, she cautioned that a ceasefire should not be a reason to lower guard. "Uncertainty remains high, but the announced peace deal reduces the likelihood of negative scenarios," she noted. Even so, oil prices are projected to stay elevated, as the Strait of Hormuz will only reopen gradually. Schnabel, considered the most hawkish member of the ECB Governing Council, reiterated that "the ECB will likely raise interest rates further to bring inflation back to the 2% target over the medium term." She added that consumer inflation expectations have risen, though there are no signs of wage pressures yet. (Jin10)

Local time on the 27th, Naim Qassem, leader of Lebanon’s Hezbollah, condemned the framework agreement struck by the United States, Israel, and Lebanon, calling it a major mistake committed by the Lebanese government and stating that Hezbollah considers the accord invalid. Qassem accused Lebanese authorities of having “legalized” Israel’s occupation through this “serious mistake” of an agreement. (CCTV News)

Prediction market platform Polymarket has seen the probability of Bitcoin falling to $50,000 this year rise to 63%, up from 51% as of June 16. Separately, the odds of Bitcoin dropping to $40,000 stand at 30%, while the probability of it climbing to $70,000 is 67%.

Prediction market platform Polymarket now puts the probability of Bitcoin falling to $50,000 this year at 63%, up from 51% as of June 16. Additionally, the probability of Bitcoin dropping to $40,000 is 30%, while the chance of it rising to $70,000 stands at 67%.