Gareth Soloway Reveals the BRUTAL Next Phase of This Meltdown!

South Korea’s AI-heavy KOSPI, which the host described as a proxy for Samsung and SK Hynix, was about 40% below its highs after circuit breakers were triggered on two consecutive days, with losses of 8% and 9%. The host also noted that some AI stocks are down 85%–90% from their records. Gareth Soloway said the trade’s leverage makes it vulnerable to forced selling if financing costs rise. He cited CoreWeave credit default swaps implying a 15% borrowing rate, arguing that borrowing $100 billion at that cost would not work mathematically and could constrain spending on AI infrastructure.

Inflation added to the pressure: the host said PPI rose 1.3% against an estimate of 0.05%, while energy prices climbed 10.8%. Yet Treasury yields fell, which Soloway attributed to investors seeking the safety of US bonds amid fears of recession or financial catastrophe. He said AI capital spending has been a major contributor to US and global GDP growth, so a slowdown could have wider consequences. The 10-year yield’s fall from the prior day’s high to that day’s low was equivalent, he said, to a 25-basis-point Fed cut.

Soloway sees a possible near-term peak in yields, pointing to topping-tail patterns on daily and weekly charts, but cautioned that falling yields are not necessarily bullish if they reflect recession fears rather than easing inflation. The 10-year’s broader pattern still has higher highs and higher lows. He said inflation is unlikely to return to 2% soon without a severe recession, and warned that renewed stimulus could push the 10-year yield into the sixes. His equity outlook is divided: he remains bullish on the S&P 500 and sees a target near 8,000, about 3%–3.5% above the level discussed, while the Nasdaq may have made its high for the foreseeable future, despite room for a roughly 5% rebound.

Large-cap strength could disguise deeper damage among smaller AI companies, Soloway said. He sees higher-leverage AI-related firms taking heavier losses, while Nvidia remains in an uptrend. He thinks the AI trade may have topped as competition increases and margins face pressure, including from new memory-chip supply. That does not mean AI is going away: data centers will continue to require more energy. He also sees some energy-related stocks as inexpensive compared with their 2025 trading levels before the nuclear-energy and small-reactor boom, though he focuses mainly on crypto charts and capital flows rather than evaluating every project.

Gold is weakening around a long-term trend line, while silver has underperformed since breaking its wedge pattern. Soloway linked some of silver’s weakness to its industrial demand, which could suffer if an AI slowdown reduces demand for metals used in data centers. If yields stop falling, he sees gold reaching 3,500 and said he would buy physical gold there. On oil, he argued that Iran is trying to keep prices elevated ahead of the US midterms to pressure the administration and improve its negotiating position. He said that without a deal before the midterms, the administration may have little incentive to reach one afterward and could consider further military action.

Soloway believes the crypto bear market has ended and Bitcoin has bottomed, while warning that substantial drawdowns remain possible. He sees $81,000 as important to preserving a bullish pattern; a move above $87,200 could open a path toward roughly $95,000–$97,000. A break below $81,000 would put about $75,500 in view, and a move below roughly $75,000–$76,000 would make the setup more difficult. He would deploy about 25% of his intended allocation near $75,000 and 50% near $67,000, keeping capital in reserve. Near $67,000, he sees prior pivots and converging trend lines; he would put a stop below lows near $57,000 and does not want a daily close below the prior cycle low.

His Bitcoin measured-move target is roughly $97,000–$98,000, with $100,000 a likely resistance area where he would expect a possible pullback. He prefers partial exposure to going all in and might add near $81,000 after a pullback if Bitcoin first makes a higher high. For other tokens, he would start small in Solana near $97 and also likes it around $84; he considers Zcash below $1,000 attractive, has begun a small HBAR position at technical support, and would buy Hyperliquid near $65 if it reaches its longer-term trend line. He called XRP “dead money” between two levels and said Chainlink held a trend line after a significant pullback, though he is unsure it will make a new high.