As Cheong noted, tech and AI markets suffered a harsh selloff on Friday, as the Nasdaq 100 fell 3.4% during the afternoon, with companies like Intel dropping over 29% during the session. The pullback drove the Nasdaq into correction territory, meaning the index dropped by more than 10% from its last historic high.

Cheong believes that if the AI bubble bursts, some of this liquidity will exit the tech ecosystem and will land on crypto again, as investors familiar with the digital assets market recoil and bet on the sector to reach higher relevance in the future.

“Many crypto-natives that off-ramped previously will on-ramp again to reallocate money into the asset class that we are much more familiar with instead of being exit liquidity…