BTIG warns the AI correction still has a long way to go, and crypto markets should pay attention

BTIG’s chief market technician Jonathan Krinsky delivered a blunt assessment on July 27: the semiconductor selloff that has rattled tech portfolios for weeks is not done yet. The AI trade, which powered one of the most aggressive rallies in recent memory, still has room to correct further. The technical case for more pain Krinsky has been waving red flags since May 2026. His argument is straightforward: semiconductor and AI-related stocks got parabolic, market breadth narrowed dangerously, and the momentum indicators that fueled the rally started fading well before prices caught up. He estimated a potential 9-10% downside for tech stocks based on overbought conditions and the lack of broad market leadership. On July 17, Krinsky told clients it was “premature to look for a bottom” in semiconductor stocks. Ten days later, his stance hasn’t softened. The correction, in his view, is still developing. Why crypto can’t ignore the AI unwind Look, BTIG’s reports contain zero mentions of Bitcoin, Ethereum, or any digital asset. Krinsky’s focus is entirely on semiconductors and traditional tech equities. But the correlation between risk-on tech trades and crypto markets has been a persistent...