Fractures within the ecosystem often pose a bigger threat than external ones

With the news of Bitcoin breaking $80,000, a key psychological level, the month of May started on a strong footing. Despite the Fed’s recent interest rate decision and stark warning about the long-tail risks of inflation stoked by the energy crisis in the Middle East, the market wasted no time in looking past the geopolitical risks, at least for now. The widely followed AI trade resumed, setting new records across the market, supported by strong corporate earnings alongside a solid US economy. The S&P 500 and Nasdaq 100 reached all-time highs, with the S&P 500 closing above 7,000 points for its first record high since late January.

While one can…