Key Takeaways:
Gareth Soloway of Verified Investing warns bitcoin could drop 38% to $50,000 as a bear flag pattern takes hold. Soloway told David Lin that recession odds have shifted to 2027, driven by $700 billion in annual AI capex from mega-cap firms. Natural gas stands as Soloway’s lone near-term buy, with a breakout above $2.88 signaling a potential rotation from oil. Soloway Tells David Lin Bitcoin Faces 38% Drop, Stays Short the S&P 500The IGF expanded tech software exchange-traded fund (ETF) illustrates the point, Soloway noted. Despite the index sitting at all-time highs, that ETF has shed roughly a fifth of its value in 2026, a divergence Soloway says traders should not ignore.
The 10-year Treasury yield hovering near 4.5% is the signal the bond market is not giving the all-clear, Soloway explained during the interview. The stock market, driven by retail inflows and index momentum, is ignoring it. That divergence is one more reason he is adding to short positions on the S&P and the Nasdaq.
