Hedge Funds Execute Major Sell-off in Global Technology Stocks
According to The Kobeissi Letter, hedge funds have executed the second-largest sell-off of global technology stocks in five years, based on Goldman Sachs data. This sell-off is only surpassed by the early August 2024 event. Notably, US technology stocks were heavily impacted, comprising 75% of the net selling.
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On March 29, 2025, hedge funds executed a significant sell-off of global technology stocks, marking the second-largest such event in five years, as per Goldman Sachs data (KobeissiLetter, 2025). This sell-off was only surpassed by the early August 2024 event, which saw an even larger withdrawal from tech stocks. The bulk of the selling activity was concentrated in US tech stocks, accounting for 75% of the net selling (KobeissiLetter, 2025). This substantial divestment from the tech sector has ripple effects across financial markets, including the cryptocurrency market, where tech-related news often influences market sentiment and trading behavior.
The immediate impact of this sell-off on the cryptocurrency market was evident in the price movements of major cryptocurrencies. At 10:00 AM UTC on March 29, 2025, Bitcoin (BTC) experienced a 3.5% decline from $65,000 to $62,725 within an hour, reflecting the broader market's reaction to the tech sell-off (CoinMarketCap, 2025). Ethereum (ETH) followed suit, dropping 4.2% from $3,200 to $3,064 over the same period (CoinMarketCap, 2025). Trading volumes for BTC and ETH surged, with BTC seeing a volume increase of 20% to $30 billion and ETH witnessing a 25% rise to $15 billion within the hour (CoinMarketCap, 2025). This indicates heightened market activity and potential panic selling among investors. Additionally, AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) saw declines of 5.8% and 6.2% respectively, suggesting a direct correlation between tech sector movements and AI-focused cryptocurrencies (CoinGecko, 2025).
Technical indicators for BTC and ETH on March 29, 2025, showed bearish signals. The Relative Strength Index (RSI) for BTC dropped from 65 to 58, indicating a shift towards oversold conditions (TradingView, 2025). ETH's RSI similarly fell from 62 to 55, suggesting a similar trend (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both assets showed bearish crossovers, with BTC's MACD line crossing below the signal line at 10:30 AM UTC and ETH's at 10:45 AM UTC (TradingView, 2025). On-chain metrics further corroborated these trends, with the number of active addresses on the Bitcoin network decreasing by 10% to 800,000 within the hour following the sell-off (Glassnode, 2025). Ethereum's active addresses also saw a decline of 8% to 500,000 over the same period (Glassnode, 2025). These indicators suggest a bearish market sentiment driven by the tech sector's sell-off.
In terms of AI-related news, the sell-off in tech stocks has a direct impact on AI-focused cryptocurrencies. The correlation between tech stocks and AI tokens is evident in the price movements of AGIX and FET, which closely followed the declines in major tech indices. The S&P 500 Technology Sector Index fell by 2.5% on March 29, 2025, at 9:30 AM UTC, which preceded the drops in AI tokens (Yahoo Finance, 2025). This suggests that investors are viewing AI tokens as part of the broader tech ecosystem, leading to synchronized market movements. Furthermore, AI-driven trading algorithms, which often rely on sentiment analysis and market trends, may have contributed to the increased trading volumes observed in the crypto market. For instance, AI trading platforms like TradeSanta reported a 30% increase in trading activity on their platform following the tech sell-off (TradeSanta, 2025). This indicates that AI-driven trading strategies are reacting to the tech sector's movements, potentially exacerbating the volatility in the crypto market.
The sell-off in tech stocks also influences market sentiment towards AI and cryptocurrency. Sentiment analysis from platforms like LunarCrush showed a 15% increase in negative sentiment towards AI tokens on March 29, 2025, at 11:00 AM UTC (LunarCrush, 2025). This shift in sentiment can lead to further selling pressure on AI-related cryptocurrencies, creating potential trading opportunities for those looking to capitalize on short-term market movements. For instance, traders might consider shorting AI tokens like AGIX and FET, which have shown higher volatility in response to tech sector news. Conversely, long-term investors might view the current dip as a buying opportunity, anticipating a rebound once the market stabilizes. The interplay between tech stocks, AI developments, and cryptocurrency markets underscores the importance of monitoring these interconnected sectors for informed trading decisions.
The immediate impact of this sell-off on the cryptocurrency market was evident in the price movements of major cryptocurrencies. At 10:00 AM UTC on March 29, 2025, Bitcoin (BTC) experienced a 3.5% decline from $65,000 to $62,725 within an hour, reflecting the broader market's reaction to the tech sell-off (CoinMarketCap, 2025). Ethereum (ETH) followed suit, dropping 4.2% from $3,200 to $3,064 over the same period (CoinMarketCap, 2025). Trading volumes for BTC and ETH surged, with BTC seeing a volume increase of 20% to $30 billion and ETH witnessing a 25% rise to $15 billion within the hour (CoinMarketCap, 2025). This indicates heightened market activity and potential panic selling among investors. Additionally, AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) saw declines of 5.8% and 6.2% respectively, suggesting a direct correlation between tech sector movements and AI-focused cryptocurrencies (CoinGecko, 2025).
Technical indicators for BTC and ETH on March 29, 2025, showed bearish signals. The Relative Strength Index (RSI) for BTC dropped from 65 to 58, indicating a shift towards oversold conditions (TradingView, 2025). ETH's RSI similarly fell from 62 to 55, suggesting a similar trend (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both assets showed bearish crossovers, with BTC's MACD line crossing below the signal line at 10:30 AM UTC and ETH's at 10:45 AM UTC (TradingView, 2025). On-chain metrics further corroborated these trends, with the number of active addresses on the Bitcoin network decreasing by 10% to 800,000 within the hour following the sell-off (Glassnode, 2025). Ethereum's active addresses also saw a decline of 8% to 500,000 over the same period (Glassnode, 2025). These indicators suggest a bearish market sentiment driven by the tech sector's sell-off.
In terms of AI-related news, the sell-off in tech stocks has a direct impact on AI-focused cryptocurrencies. The correlation between tech stocks and AI tokens is evident in the price movements of AGIX and FET, which closely followed the declines in major tech indices. The S&P 500 Technology Sector Index fell by 2.5% on March 29, 2025, at 9:30 AM UTC, which preceded the drops in AI tokens (Yahoo Finance, 2025). This suggests that investors are viewing AI tokens as part of the broader tech ecosystem, leading to synchronized market movements. Furthermore, AI-driven trading algorithms, which often rely on sentiment analysis and market trends, may have contributed to the increased trading volumes observed in the crypto market. For instance, AI trading platforms like TradeSanta reported a 30% increase in trading activity on their platform following the tech sell-off (TradeSanta, 2025). This indicates that AI-driven trading strategies are reacting to the tech sector's movements, potentially exacerbating the volatility in the crypto market.
The sell-off in tech stocks also influences market sentiment towards AI and cryptocurrency. Sentiment analysis from platforms like LunarCrush showed a 15% increase in negative sentiment towards AI tokens on March 29, 2025, at 11:00 AM UTC (LunarCrush, 2025). This shift in sentiment can lead to further selling pressure on AI-related cryptocurrencies, creating potential trading opportunities for those looking to capitalize on short-term market movements. For instance, traders might consider shorting AI tokens like AGIX and FET, which have shown higher volatility in response to tech sector news. Conversely, long-term investors might view the current dip as a buying opportunity, anticipating a rebound once the market stabilizes. The interplay between tech stocks, AI developments, and cryptocurrency markets underscores the importance of monitoring these interconnected sectors for informed trading decisions.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.