Quick Take Big Tech’s 2026 capital spending plans have blown past expectations , sparking a sharp market reaction. Investors still believe in AI — but they now want clear proof of returns , not just long-term promises. The CapEx Shock Across recent earnings, mega-cap tech companies pushed 2026 CapEx from “already massive” to “historically extreme” : Meta Platforms : US$115–135B vs US$110B consensus Stock jumped ~10% initially, but gains faded → investors want evidence, not AI rhetoric Microsoft : US$140–150B vs US$109B consensus Stock fell ~10% → ROI timing now under scrutiny Alphabet : US$175–185B vs US$115B consensus Shares slipped as markets adjusted to a more capital-intensive Google Amazon : ~US$200B vs US$146B consensus Stock dropped ~11% after-hours on cash flow concerns What Investors Are Really Worried About This is no longer about believing in AI — it’s about financial optics and timing . Key Market Fears CapEx is rising fa...
Quick Summary
Bitcoin plunged over 10% to around US$65,000, dragging crypto-linked stocks down more than 15%
Options data shows no mass exit — traders are rotating strategies, not abandoning crypto
HUT sees short-term put selling, signalling stabilisation rather than a bounce
MSTR attracts longer-dated call buying, pointing to rebound expectations over weeks to months
What Happened
A sharp selloff in Bitcoin sent shockwaves through the crypto ecosystem. Mining stocks and Bitcoin treasury names were hit hard, with Hut 8 and MicroStrategy each falling more than 15% in a single session.
Despite the severity of the move, options markets tell a calmer story.
HUT: Volatility Selling Signals Short-Term Stabilisation
After HUT slid to around US$46, options traders did not rush to buy downside protection.
Instead:
Near-dated puts were sold, clustered around US$46–US$48
This reflects a view that immediate downside risk is diminishing
Traders are betting on time decay and lower volatility, not an instant rebound
Key signal: The market believes the sharp leg down is nearing completion, transitioning into consolidation rather than collapse.
MSTR: Call Buyers Look Beyond the Chaos
In contrast, MSTR’s options activity shows a longer-term mindset.
Traders bought April-dated call options
Indicates confidence that Bitcoin can recover once short-term deleveraging fades
MSTR offers higher upside elasticity in a rebound scenario due to its Bitcoin-heavy balance sheet
Key signal: Capital is shifting away from short-term noise toward medium-term recovery potential.
What Options Markets Are Saying
Short term:
Selloff largely digested
Preference for volatility-selling, not aggressive directional bets
Medium term:
Gradual build-up of bullish exposure via longer-dated calls
Rebound thesis forming, but patience required
Investor Takeaway
This is not capitulation — it’s repositioning.
Options data suggests:
It’s too early to chase a sharp rebound
It’s also dangerous to press bearish bets at peak fear
Crypto assets may be entering a near-term consolidation phase, with the next major trend decision still ahead
Bottom Line
The smart money play is clear:
Absorb the shock now, let volatility cool, and selectively position for a rebound later.
For crypto investors, the message isn’t panic — it’s patience and timing.
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