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James E. Thorne highlights how Bitcoin's price experienced a sharp drop as emotional retail investors sold amid news of the Clarity Act progressing through Senate committees and Wall Street ETFs facing record outflows.
He notes that Strategy trimmed its Bitcoin holdings to pay dividends, with liquidity moving into AI stocks as a result of these developments.
Thorne previously analyzed how accelerating digital technology may break traditional limits on S&P 500 earnings growth in a recent report. He also discussed the AI super cycle, mentioning MU, SpaceX, and setting an S&P 500 target of 14000 in an earlier commentary. These insights provide context for his latest observations on fund flows between Bitcoin and AI stocks.