Why Monday’s Market Meltdown is the Best Thing Since Sliced Bread 🍞📉

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What to know:

  • Tom Lee, head of Fundstrat Research, calls Monday’s price action an overreaction. Because, of course, losing $465 billion in a day is just a minor hiccup. 🤷‍♂️
  • U.S. markets look healthy as bitcoin outperforms small caps and financials year-to-date. Because nothing says “healthy” like a digital currency that swings more than a pendulum on caffeine. 🕰️☕

Tom Lee, head of Fundstrat Research, discussed Monday’s market sell-off as an “overreaction”. On CNBC, Lee said that the double-digit drawdown in NVIDIA (NVDA) is the biggest opportunity since the COVID outbreak and will prove to be a great buying moment. Because, you know, when life gives you lemons, buy NVIDIA. 🍋💻

“Markets don’t like uncertainty, to me, it’s an overreaction, and this overreaction will be a great opportunity for investors,” Lee said. Translation: “Panic now, profit later. You’re welcome.” 🤑

Lee’s call seems good so far. After Nasdaq sold off 3% and NVIDIA dropped 17%, Nasdaq futures are up 1% while NVDA is 5% higher in pre-market trading. Because nothing says “recovery” like a stock that bounces back faster than a rubber ball in a trampoline park. 🏀🎪

Monday’s sell-off in NVDA was the biggest single-day market cap loss in history, with NVIDIA losing $465 billion in market cap, according to Bloomberg Data. That’s enough money to buy every avocado toast in the world for the next century. 🥑🍞

Bitcoin (BTC) fell as far as $97,500 on Monday and is already back above $103,000; but was as high as $105,000 before the news came out on the AI China’s DeepSeek; this will be a level bulls will look to reclaim in the short-term. Because Bitcoin is like a cat—it always lands on its feet, no matter how high it falls from. 🐱💎

AI bitcoin miners also saw massive drawdowns, as much as 30%, including Core Scientific (CORZ), which is now slightly higher in pre-market. Because when your mining rigs are powered by AI, even the machines need a breather. 🤖⛏️

Lee also alludes to a healthy market structure in U.S. equities and notes that bitcoin has outperformed small caps and financials year to date. Because nothing says “healthy” like a market that’s more volatile than a teenager’s mood swings. 📈📉

Wednesday turns to a Federal Reserve policy meeting which is largely expected for the federal funds rate to be paused at the 4:25-4:50 rate. Lee says there is some uncertainty going into the meeting as markets are currently too hawkish and believe the market is putting too much emphasis on a potential rate hike in 2025. Because, you know, predicting the future is easy—just ask any economist. 🦉📅

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2025-01-28 14:13