Secondly, Lee explains that investors may be selling off their existing equity and crypto holdings to free up funds ahead of Anthropic’s upcoming IPO.
Lastly, the aftermath of the huge $6.3 billion Binance hack that occurred in late October may also be playing a role.
According to Lee, some account holders may be cashing out or converting their recovered funds into stablecoins, further contributing to the sell-off.
Aside from that, Lee has also cited potential risks posed by AI to existing cybersecurity systems and increased U.S. scrutiny of semiconductor sales to Asian markets, including China, as additional factors.
However, these are all just potential explanations rather than confirmed reasons for the downturn.
