Bitcoin slips as AI rotation and IPO losses steer flows

Crypto schadenfreude: why number go down is trending now

The meme “number go down” has become shorthand for a mood that often accompanies cyclical crypto selloffs: public glee at falling prices and hard pivots in narrative. This round of schadenfreude is amplified by a sharp rotation in the broader tech complex, with enthusiasm and capital chasing artificial intelligence themes while risk appetite for crypto and software fades.

That rotation is not just anecdotal. As reported by AOL, excitement that once buoyed crypto from parts of the tech world is being redirected to the AI trade, which it said is acting like a wrecking ball to software assets. In practice, that shift tightens liquidity conditions for speculative web3 bets and raises the hurdle rate for crypto projects that rely on momentum or high-beta equity sympathy.

Why this matters for investors, builders, and institutions

For investors, schadenfreude is not an investment thesis. It is a sentiment signal that often spikes near stress points, when positioning is fragile and fundamentals are being repriced. Treating that signal as data, rather than as a cue to overreact, can help keep focus on liquidity, counterparty exposures, and regulatory milestones that actually change adoption curves.

For builders, the market’s narrative reset is a reminder that product-market fit and compliant market structure outlast hype. One notable infrastructure update is the XRP Ledger’s new Permissioned DEX amendment, which, according to Finance Magnates, enables on-chain trading environments designed for regulated institutions. After that activation, Finance Magnates wrote that it “allows regulated institutions to trade on-chain in controlled environments.”

For institutions, these rails matter because they translate policy constraints into operational features, access controls, whitelisting, and clearer segregation, making it easier to evaluate on-chain liquidity alongside existing compliance frameworks. If the bear-cycle schadenfreude forces a higher bar for custody, surveillance, and disclosures, the net effect could be a healthier venue mix when flows return.

Immediate market impact: 2025 IPO losses and BTC drawdowns

The drawdown phase has been especially painful for newly public crypto names. As reported by Morningstar, investors are nursing large losses across 2025 crypto IPOs even as the analysis flags stablecoin companies as a potential relative haven. That divergence reflects how markets are distinguishing between cash-flow resilience and beta exposure to token cycles.

At the same time, headlines around bitcoin have leaned into capitulation narratives. CoinDesk’s podcast network summarized recent conditions as a “massive $16k price drawdown and capitulation theories,” alongside attention on Bitdeer Technologies’ legal woes in Ohio. Those stress points reinforce why equity proxies and mining-adjacent listings can underperform when liquidity thins and legal overhangs rise.

Contextually, proxy exposures have also been volatile. Based on an update from Yahoo Finance’s automated analysis tool, MicroStrategy has continued to accumulate bitcoin while its stock price faces pressure amid broader market caution. That mix, ongoing treasury accumulation against equity volatility, illustrates how corporate beta can decouple from token narratives during drawdowns.

Stablecoin firms as relative haven: strengths and risks

Within this reset, stablecoin firms are being floated as a comparative safe harbor. The haven framing rests on the idea that demand for transactional liquidity can remain steadier than speculative activity, particularly when the market is risk-off and participants prefer settlement assets over directional exposure.

However, the same conditions that elevate stablecoins also underline their constraints. Key risks include evolving regulation, reserve management practices, and operational dependencies on banking and payments partners. If liquidity thins, even money-like instruments can face spread widening and redemption frictions, so any haven status is conditional on robust transparency and resilient counterparties.