Bitcoin Trust (IBIT) is facing severe asset outflows. The firm, run by BlackRock (BLK),
recorded a $2.2 billion outflow in November as of yesterday. This is according to FactSet data.
The underlying cryptocurrency, Bitcoin (BTC-USD), fell off the proverbial cliff after peaking at around $126,000 earlier last month. BTC-USD closed at $88,080 last night, recovering from a low of $80,760 reached on November 21. BTC has a good chance of rebounding sharply. It has a history of doing so when markets are most fearful.
OpenAI lost another fan. Salesforce (CRM) CEO Marc Benioff said he has used ChatGPT daily for the last three years. After using Alphabet’s (GOOG) Gemini 3 for two hours, he is not going back. Benioff said that Gemini is sharper and faster for reasoning, speed, images, and video.
OpenAI must spend $1.4 trillion to sustain some of its moat in the AI market. However, Alphabet may run its AI at a loss, since ad revenue covers its costs. Amazon (AMZN) and Microsoft (MSFT) have similar business dynamics.
Beware of Monday’s Rally
Nasdaq (QQQ) jumped by 2.56% to claw back recent losses. The gain is not sustainable. For example, Tesla (TSLA) gained 6.83% after CEO Elon Musk said that Tesla had advanced AI chip and board engineering teams. It is nearly finished with its AI5 chip and has started working on an AI6 chip.
Beware of Tesla’s core prospects. EV sales will continue to shrink, pressuring the firm’s costs and cash flow.
