Image source: The Motley Fool. Thursday, February 5, 2026 at 5 p.m. ET CALL PARTICIPANTS Founder, Chairman, and Chief Executive Officer — KR Sridhar Acting Principal Financial Officer and Principal Accounting Officer — Maciej Kurzymski Vice President, Investor Relations — Michael Tierney Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Revenue -- $777.7 million for the qu...
Image source: The Motley Fool. Thursday, February 5, 2026 at 5 p.m. ET CALL PARTICIPANTS Founder, Chairman, and Chief Executive Officer — KR Sridhar Acting Principal Financial Officer and Principal Accounting Officer — Maciej Kurzymski Vice President, Investor Relations — Michael Tierney Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Revenue -- $777.7 million for the quarter, representing 35.9% growth year over year. -- $777.7 million for the quarter, representing 35.9% growth year over year. Full-Year Revenue -- $2 billion, up 37.3% from 2024. -- $2 billion, up 37.3% from 2024. Quarterly Gross Margin -- 31.9%, down from 39.3% in 2024, due to project mix variability. -- 31.9%, down from 39.3% in 2024, due to project mix variability. Quarterly Non-GAAP Operating Income -- $133 million compared to $133.4 million in Q4 2024. -- $133 million compared to $133.4 million in Q4 2024. Quarterly Non-GAAP Adjusted EBITDA -- $146.1 million versus $147.3 million in Q4 2024. -- $146.1 million versus $147.3 million in Q4 2024. Non-GAAP EPS -- $0.45, compared to $0.43 a year ago. -- $0.45, compared to $0.43 a year ago. Product Margins -- 37% for the quarter. -- 37% for the quarter. Service Margins -- Approximately 20% for the quarter, with service profitable for eight consecutive quarters. -- Approximately 20% for the quarter, with service profitable for eight consecutive quarters. Product Backlog -- Increased 140% year over year to about $6 billion. -- Increased 140% year over year to about $6 billion. Service Backlog -- Approximately $14 billion, with 100% attach rate from product backlog. -- Approximately $14 billion, with 100% attach rate from product backlog. C&I Backlog Growth -- Grew over 135% compared to the prior year. -- Grew over 135% compared to the prior year. Geographic Backlog Shift -- Over 80% of US backlog is now from states outside California and the Northeast, indicating expansion into lower-cost states. -- Over 80% of US backlog is no...
Thursday, February 5th, 2026 Market indexes scuba-dived today: went below the surface and stayed there, across the board. Bitcoin, metals and apparently equities are all being painted with the same quivering-hand brush. The Dow shed -592 points, -1.20%, the S&P 500 was -84, -1.23%, the Nasdaq -363, -1.59% and the small-cap Russell 2000 lost -46 points, -1.79%. Earnings Reports After Today’s Close ...
Thursday, February 5th, 2026 Market indexes scuba-dived today: went below the surface and stayed there, across the board. Bitcoin, metals and apparently equities are all being painted with the same quivering-hand brush. The Dow shed -592 points, -1.20%, the S&P 500 was -84, -1.23%, the Nasdaq -363, -1.59% and the small-cap Russell 2000 lost -46 points, -1.79%. Earnings Reports After Today’s Close Amazon AMZN posted mixed Q4 results after today’s closing bell, with earnings of $1.95 per share coming in light of the Zacks consensus by 3 cents (though nicely above the $1.86 per share reported in the year-ago quarter). Revenues outperformed slightly for the quarter: $213.4 billion versus the $211.5 billion anticipated. Amazon Web Services (AWS) outpaced expectations, $35.6 billion versus $34.9 billion. None of this explains why shares are trading down -8% in after hours, but this does: $200 billion in projected capex spending, presumably to keep up in the AI infrastructure race with companies like Alphabet GOOGL and Meta META. But we saw Microsoft MSFT fall off on their aggressive buy in this space, as well; as long as the AI trade remains suspect, massive expenditures into it aren’t going to be met with much but disdain. This is before mentioning the 16K layoffs at the corporation this week, bringing Amazon’s grand total to 30K employees laid off since late last year. I guess $200 billion in spending doesn’t come cheaply, especially with lower-than-expected operating income in the current quarter. Amazon also saw its string on 12 straight quarterly earnings beats come to an end today. Elsewhere, Roblox RBLX shares are up +20% on its Q4 earnings release this afternoon, with a better-than-expected loss per share of -$0.45, four cents better than the Zacks consensus. Daily Active Users (DAUs) grew +69% year over year to 144 million, with Hours Engages way up, +88%, to 35 billion. Buy-now, pay-later platform Affirm AFRM stormed past estimates in its fiscal Q2 report after ...
sanserstudio/iStock via Getty Images The last couple of years have proven that automation isn’t immune to larger macroeconomic cycles, as many companies have pulled back on their spending in the face of weaker demand and greater uncertainty. That has made life difficult for Cognex ( CGNX ), particularly given weaker cycles for key end markets like autos and consumer electronics. Cognex has seen a ...
sanserstudio/iStock via Getty Images The last couple of years have proven that automation isn’t immune to larger macroeconomic cycles, as many companies have pulled back on their spending in the face of weaker demand and greater uncertainty. That has made life difficult for Cognex ( CGNX ), particularly given weaker cycles for key end markets like autos and consumer electronics. Cognex has seen a tougher downcycle than I expected, and the shares are down about 10% from when I last wrote about the stock . Automation names in general have done better than this, and there’s been a definite divergence between names like Hexagon ( HXGBY ), Rockwell ( ROK ), and Siemens ( SIEGY ) and machine vision names like Cognex, Datalogic ( DLGCF ), Keyence ( KYCCF ), and Zebra ( ZBRA ). I still see meaningful addressable market opportunities for Cognex, and I agree with the company’s strategic shift in marketing (aimed at expanding its customer base) and its dive into AI-enabled tools. The problem is that while I can make an argument for long-term opportunity here, the near-term valuation is not conservative in the least, and sell-side expectations really haven’t inflected higher to a meaningful degree. Looking for a Stronger Guide With Q4 Although Cognex posted 13% organic yoy growth in Q3, a modest beat versus expectations, nobody is expecting a similar result in Q4, as the highest estimate on the Street ($244.5 million ) is in line with the high end of management guidance and only works out to about 6.5% yoy growth. Looking at the companies that have reported so far, auto capex spending remains strained, particularly in North America and Europe, with Chinese OEMs driving more of the demand for automation (robotics) from Fanuc ( FANUY ) and Yaskawa ( YASKY ), and Atlas Copco ( ATLKY ) noting sluggish metrology demand. There does seem to be a general trend of improvement, though, and while I don’t expect a strong quarter for Cognex, guidance should be a little better. I would expec...
Legendary investor Warren Buffett ended his run as the CEO of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) at the end of 2025. Buffett may have another long run coming to an end as of Tuesday. Buffett Drops Out Of Top 10 Richest Once the richest person in the world, Buffett finished 2025 ranked 10th at a net worth of $151 billion, up $9.44 billion for the year. Just over one month into 2026, Buffett ha...
Legendary investor Warren Buffett ended his run as the CEO of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) at the end of 2025. Buffett may have another long run coming to an end as of Tuesday. Buffett Drops Out Of Top 10 Richest Once the richest person in the world, Buffett finished 2025 ranked 10th at a net worth of $151 billion, up $9.44 billion for the year. Just over one month into 2026, Buffett has fallen out of the top 10 richest people in the world, with Walmart Inc (NYSE:WMT) heir Jim Walton replacing him at 10th place, according to Bloomberg. Don't Miss: The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.85/Share Put professional stock research to work in a single ETF — explore Motley Fool Asset Management's factor-based funds. Buffett currently ranks 11th at $147 billion, with his net worth down $4.75 billion in 2026. Jim Walton, the youngest son of Walmart co-founder Sam Walton, is worth $149 billion. His wealth has gained $12.4 billion in 2026 to join the top 10. Buffett could fall further down, as he is currently surrounded by other Walmart heirs: Rob Walton ranks 12th at $146 billion, up $12 billion in 2026. Alice Walton, the world's richest woman, ranks 13th, at $145 billion, up $12.2 billion in 2026. The Waltons previously knocked Bill Gates down the world's richest list in late 2025 as they approached the top 10. Both Gates and Buffett have pledged to give away large portions of their wealth, which may contribute to their drops on the list. Trending: This Real Estate Fund Pays 10x More Than the Average Savings Account – Invest From Just $100 What's Next for Walmart, Berkshire Hathaway Buffett may quickly fall further down the billionaires list as Walmart shares gained another 2.94% on Tuesday, with shares hitting new all-time highs. Walmart joined the $1 trillion market capitalization club, becoming one of the rare American companies to pass the milestone. Walmart is currently worth $1.02 trillion, ranking behind Be...
bjdlzx/E+ via Getty Images Looking back at the past year The year 2025 has been a disappointment for many investors with Bitcoin ( BTC-USD ) allocations, since it has been the first post-halving year, ever, to end with a negative return, albeit a small one. The previous post-halving years always had positive returns: In 2013, Bitcoin surged ~5,400%, in 2017 ~ 1,300%, and in 2021 ~ 60%, proving str...
bjdlzx/E+ via Getty Images Looking back at the past year The year 2025 has been a disappointment for many investors with Bitcoin ( BTC-USD ) allocations, since it has been the first post-halving year, ever, to end with a negative return, albeit a small one. The previous post-halving years always had positive returns: In 2013, Bitcoin surged ~5,400%, in 2017 ~ 1,300%, and in 2021 ~ 60%, proving strong, diminishing, however, still positive returns throughout every post-halving year. 2025 was the first post-halving year to be different. Bitcoin Price (annual candles) (tradingview.com) We can combine the returns of each halving and pre-halving year of Bitcoin. The results are as follows: Bull Market years Bitcoin Price performance 2012 - 2013 ~ 17,000 % 2016 - 2017 ~ 3,100 % 2020 - 2021 ~ 550% 2024 - 2025 ~ 107 % Click to enlarge Seasoned crypto investors know that the more preferable Bitcoin bull markets, throughout the last three cycles, relative to drawdown, occurred during halving years. The returns of Bitcoin, the mother of all Crypto Currencies, had been steadily positive, with limited downside, volatility, and drawdowns. On the other hand, the post-halving years of 2017 and 2021 had stunningly positive returns overall, but at the cost of a much worse risk to reward ratio, with elevated downside risk and volatility. The easy money had always been made in halving years. The sample size of Bitcoin cycles remains small due to the asset's limited lifetime, and one should be cautious of making conclusions about a trend. Taking the limited comparability into account, one cannot ignore that throughout previous cycles, the halving year had always been characterized as the year of rising Bitcoin dominance in par with positive Bitcoin price action. The post-halving year had been the year of falling Bitcoin dominance, in par with positive Bitcoin price action. BTC.D (blue) and BTCUSD (orange) by Author (tradingview.com) Bitcoin outperformed on a risk/reward basis in every si...
Almost all side-effects listed for statins are not caused by the drugs, according to the world’s most comprehensive review of evidence. Other than the well-known risks around muscle pain and diabetes, only four of 66 other statin side-effects listed on labels – liver test changes, minor liver abnormalities, urine changes and tissue swelling – are supported by evidence. And the risks are very small...
Almost all side-effects listed for statins are not caused by the drugs, according to the world’s most comprehensive review of evidence. Other than the well-known risks around muscle pain and diabetes, only four of 66 other statin side-effects listed on labels – liver test changes, minor liver abnormalities, urine changes and tissue swelling – are supported by evidence. And the risks are very small, according to the systematic review and meta-analysis published in the Lancet. Statins have been used by hundreds of millions of people worldwide over the last three decades and are proven to reduce heart attacks, strokes and cardiovascular deaths. At the same time, millions have been put off the drugs amid long-running safety concerns, with statin labels listing dozens of possible side-effects. The study is the most comprehensive assessment of evidence for listed side-effects of statins. It examined 19 randomised controlled trials involving 124,000 people, with an average follow-up of four and a half years. Of the 66 side-effects currently listed on product labels, researchers found no strong evidence to support statins causing 62 of them, such as memory problems, depression, sleep disturbances and nerve damage leading to tingling in the hands and feet. The results showed the risk of most listed side-effects was minimal while the benefits far outweighed potential harms. As a result, labels should be updated to better reflect the evidence so patients and doctors could make more informed choices about statins, the researchers said. The study’s lead author, Christina Reith, an associate professor at Oxford University, said: “What we were able to show reliably was that statins did not make these commonly experienced events occur more often. “So for example, the percentage of people suffering memory loss per year was similar to those taking statin therapy as those not, equally. The percentage of people suffering sleep problems per year was similar to those taking statin therap...
Retail investors who piled into the Trump administration’s promised crypto paradise via Wall Street-approved funds are now learning an expensive lesson in market gravity. Bitcoin and a slew of newly minted altcoin exchange-traded funds have crashed, erasing all gains made since just before Donald Trump retook the White House and wiping out the speculative premium that had defined the era’s digital...
Retail investors who piled into the Trump administration’s promised crypto paradise via Wall Street-approved funds are now learning an expensive lesson in market gravity. Bitcoin and a slew of newly minted altcoin exchange-traded funds have crashed, erasing all gains made since just before Donald Trump retook the White House and wiping out the speculative premium that had defined the era’s digital-asset boom. Despite the president’s pledge to make America the world’s crypto capital, Bitcoin has plunged 50% from its peak to trade around $63,000. Cryptocurrencies beyond Bitcoin have fared even worse, with a gauge tracking 50 smaller tokens tumbling 67% from a recent peak in October. Overall, the market has shed at least $700 billion in value over the past week. The carnage marks a swift reversal for an asset class Trump vowed to elevate into a national infrastructure priority. Regulators, spurred by the White House ’s pro-digital-asset mandate, cleared the path for a flood of exchange-traded products. Money managers moved quickly to capitalize, rolling out funds tied not only to blue-chip tokens but also to riskier ones, packaging them into easily tradable ETFs that spanned speculative strategies, thematic bets and income-focused wrappers. For retail investors, however, the arrival of institutional backing has so far brought more pain than protection. “Having a pro-crypto administration doesn’t magically eliminate the category’s downside volatility, and any investor who expected otherwise is learning that lesson the hard way,” said Nate Geraci , president of NovaDius Wealth Management. “Like many other asset classes, crypto is subject to inevitable periods of sharp drawdowns — something neither the White House nor regulators can prevent.” According to crypto-data firm Glassnode, the average cost basis for US spot-Bitcoin ETF holders sits around $84,100 — meaning many are in the red as Bitcoin trades well below that level. While the paper losses are snowballing, the ps...
China’s trade with some South American nations is accelerating after the opening of Peru’s Chancay port, underscoring Beijing's push to secure resources and bolster industrial supply chains under the Belt and Road Initiative, analysts said. The surge in two-way trade builds on years of Chinese investment and comes as the United States seeks to roll back Beijing’s influence in the region under a st...
China’s trade with some South American nations is accelerating after the opening of Peru’s Chancay port, underscoring Beijing's push to secure resources and bolster industrial supply chains under the Belt and Road Initiative, analysts said. The surge in two-way trade builds on years of Chinese investment and comes as the United States seeks to roll back Beijing’s influence in the region under a strategy US President Donald Trump has called the “Donroe” doctrine – invoking a 19th-century policy that warned European powers against meddling in the newly independent nations of the Americas. Trump repeatedly vowed to “take back” control of the strategic Panama Canal before a court in the Central American nation ruled against a subsidiary of Hong Kong’s CK Hutchison last week, sparking ire from Beijing. Washington also abducted then-Venezuelan president Nicolas Maduro in early January, securing influence over the country’s oil sector. Advertisement China’s trade with Peru rose 17.8 per cent last year to US$50.96 billion, according to data from Beijing’s General Administration of Customs. That growth rate was the fastest pace in four years and a record in value terms. Minerals drove most of the expansion. Chinese imports of ore, slag and ash from Peru jumped 20.7 per cent in value to over US$30 billion, making the South American nation its second-largest supplier after Australia. These products accounted for 87 per cent of China’s total imports from the country. Advertisement China’s trade with Chile also reached a record US$66.9 billion, up 8.5 per cent year on year, customs data showed, while merchandise flows with Ecuador surged 24 per cent to US$17.3 billion. “The recent, dramatic rise in imports of these goods should come as no surprise,” said Charles Austin Jordan, a senior research analyst with Rhodium Group’s China Projects team.
For the quarter ended December 2025, Boyd Gaming (BYD) reported revenue of $1.06 billion, up 2% over the same period last year. EPS came in at $2.21, compared to $1.96 in the year-ago quarter. The reported revenue represents a surprise of +5.73% over the Zacks Consensus Estimate of $1 billion. With the consensus EPS estimate being $1.88, the EPS surprise was +17.3%. While investors closely watch y...
For the quarter ended December 2025, Boyd Gaming (BYD) reported revenue of $1.06 billion, up 2% over the same period last year. EPS came in at $2.21, compared to $1.96 in the year-ago quarter. The reported revenue represents a surprise of +5.73% over the Zacks Consensus Estimate of $1 billion. With the consensus EPS estimate being $1.88, the EPS surprise was +17.3%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Boyd performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues by Segment- Managed & Other : $38.69 million versus $37.49 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.3% change. Revenues by Segment- Downtown Las Vegas : $62.97 million compared to the $65.21 million average estimate based on five analysts. The reported number represents a change of -3.9% year over year. Revenues by Segment- Midwest and South : $533.08 million versus $521.91 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2.8% change. Revenues by Segment- Las Vegas Locals : $227.23 million versus the five-analyst average estimate of $229.55 million. The reported number represents a year-over-year change of -2.1%. Adjusted EBITDAR- Online : $8.17 million versus $5.46 million estimated by five analysts on average. Adjusted EBITDAR- Managed & Other : $28.59 million versus the five-analyst average estimate of $26.1 million. Adjusted EBITDAR- Corporate expense : $-24.7 ...
A relentless selloff in BYD Co. shares is laying bare investor anxiety over the profit outlook for China’s electric-vehicle sector, as cooling demand at home and surging raw material costs trigger a brutal reset of expectations. BYD’s Hong Kong-listed shares have dropped about 7% this week after disappointing sales data, extending a selloff that has shaved off more than $60 billion in market value...
A relentless selloff in BYD Co. shares is laying bare investor anxiety over the profit outlook for China’s electric-vehicle sector, as cooling demand at home and surging raw material costs trigger a brutal reset of expectations. BYD’s Hong Kong-listed shares have dropped about 7% this week after disappointing sales data, extending a selloff that has shaved off more than $60 billion in market value since May. The slump reverberated across EV peers, compounding woes for a stock market also grappling with fresh concerns over taxes and business disruption from artificial intelligence. Traders had already braced for weaker EV growth this year on lower government subsidies, reflected in a build-up of bearish bets since November. Still, the pace of demand deterioration has caught many off guard. Adding to the strain, soaring costs for battery materials and memory chips are likely to squeeze automakers’ margins even further. “Investor sentiment is extremely negative,” said Xiao Feng , co-head of China industrial research at CLSA in Hong Kong. “The deeper worry is that we’ll see large-scale earnings downgrades this year, raising doubts about the EV makers’ long-term ability to generate profits in China’s domestic market.” Exports remain a bright spot, but Chinese car manufacturers still rely heavily on the fiercely competitive domestic market, where consumers remain skittish. Morgan Stanley notes that most local automakers expect first-quarter volumes to drop 30–40% from the December quarter. January sales underscored that even market leaders aren’t immune. BYD’s domestic deliveries for the month halved versus a year ago to 109,569 units, while last year’s outperformer XPeng Inc. reported more than a more than 30% decline in total deliveries. More troubling for investors is the profit impact of surging raw material costs while EV makers are still burning cash on promotions to lure buyers. The price of lithium for EV batteries has more than doubled over the past three months,...
If you're considering investing in this stock, you need to know what's happened since 2021. Shares of international coffeehouse giant Starbucks (SBUX 0.93%) are up 13.7% in 2026 so far, as Wall Street reacted favorably to the company's Q4 2025 earnings report. From growing same-store sales to a 5% bump in global revenue and the opening of 128 net new coffeehouses around the world, it was the most ...
If you're considering investing in this stock, you need to know what's happened since 2021. Shares of international coffeehouse giant Starbucks (SBUX 0.93%) are up 13.7% in 2026 so far, as Wall Street reacted favorably to the company's Q4 2025 earnings report. From growing same-store sales to a 5% bump in global revenue and the opening of 128 net new coffeehouses around the world, it was the most triumphant earnings report since former Chipotle Mexican Grill CEO Brian Niccol took the helm of Starbucks in September 2024. I own shares in Starbucks, but despite the recent positive news, I won't be adding to my position. For all of the hopeful statistics, one number in the company's fundamentals is a dealbreaker. A successful turnaround could change things, but for now, there's still work to be done. Here's what I'm watching to see if Starbucks can return to its glory days. The challenge for Starbucks While the share price is up this year, it's down about 24% from its all-time high of $126 per share in July 2021. Back then, Starbucks had just reported Q3 2021 earnings. Looking back, it's striking how much ground it's lost in the 4.5 years since. At the time, Starbucks had just reported two-year U.S. revenue growth of 16% since Q3 2019, a figure which wouldn't have been skewed by the pandemic. Two-year same-store sales growth in the U.S. was 10%, while the company added over a million active Starbucks Rewards members that quarter, bringing its total to 24 million active members. In China, two-year revenue growth had surged 45%. Net earnings came in at $1.15 billion. But last quarter, the company reported just $293.3 in net income for the most recent quarter, a 75% decrease from quarterly net income at the stock's all-time high. Granted, much of this collapse is explained by Starbucks' recent deal to turn its China locations into a joint venture with Boyu Capital, in which the latter is taking an up to 60% interest in its retail operations. But this doesn't strike me as m...
Statins , some of the most widely used medicines in the world, often get blamed for side effects ranging from sexual dysfunction to brain fog. A new study suggests that’s unwarranted. Almost all the reactions listed on package leaflets are not in fact caused by the cholesterol medicines, according to research published in the journal The Lancet . Only four of 66 side effects commonly attributed to...
Statins , some of the most widely used medicines in the world, often get blamed for side effects ranging from sexual dysfunction to brain fog. A new study suggests that’s unwarranted. Almost all the reactions listed on package leaflets are not in fact caused by the cholesterol medicines, according to research published in the journal The Lancet . Only four of 66 side effects commonly attributed to statins are likely to be connected to the drugs, it found. The researchers called for the safety information on drug labels and other official health data to be revised, arguing that “widespread confusion” prevents both doctors and patients from making informed decisions. Misinformation about statins, notably on social media, is considered a potential threat to public health . “We can now be confident that statins do not cause the vast majority of medical issues listed as potential side effects in patient information leaflets,” said Christina Reith, associate professor at the University of Oxford ’s population-health department and one of the paper’s authors. “This allows us to be confident in saying that the benefits of statins really do significantly outweigh their risks.” Statins lower the level of what’s commonly known as bad cholesterol in the blood, reducing the risk of heart attacks and strokes. Brand names include Lipitor, Lescol and Crestor, but most are sold as generics. Debates around statins in the media have led to a substantial increase in the number of patients stopping the medicines in the past, according to research from London School of Hygiene & Tropical Medicine. The scientists looked at 19 randomized controlled trials where over 120,000 patients received either a statin or a placebo. They focused on five common medicines including atorvastatin, the Lipitor generic. Diabetes and Liver The same group of academics has worked on statins for years. They showed that the drugs were not behind muscle pain in over 90% of those who had the symptom. They also pro...
primeimages/iStock via Getty Images Bitcoin ( BTC-USD ) is down close to 50% since the October 10 liquidity crash, and a good part of the Bitcoin ETFs have recently emerged in my screener in a bright red color. Today, Bitcoin experienced its biggest one-day drop since the FTX era back in November 2022. At $63.8k (at the time of writing this article), the recent selloff wiped out pretty much all th...
primeimages/iStock via Getty Images Bitcoin ( BTC-USD ) is down close to 50% since the October 10 liquidity crash, and a good part of the Bitcoin ETFs have recently emerged in my screener in a bright red color. Today, Bitcoin experienced its biggest one-day drop since the FTX era back in November 2022. At $63.8k (at the time of writing this article), the recent selloff wiped out pretty much all the gains after the post-Trump-election rally. My rating on Bitcoin and, therefore, on the Bitcoin ETFs, varies drastically based on the timeframe under consideration. Looking at the near term, I am underweight this sector (if you can call it such). It is my view that Bitcoin didn’t sell off because markets suddenly forgot that lower rates can lift risk assets. I believe that there is a trifecta in place that's pressuring Bitcoin. First, even though the new nominated Fed Chair will likely be dovish, his policy on quantitative tightening is not encouraging for risk assets. Second, the momentum in fund outflows is high, and after the October 10 liquidation event, I think funds are rotating out of crypto straight into precious metals. And third, I see no positive catalysts ahead to change the pessimism, especially after the $70k support was broken today. That said, on a longer timeframe of 12-18 months, I believe that liquidity will (somehow) revert back into the crypto space. I am unsure what the catalyst will be, which is why I prefer to remain on the sidelines until I see a recovery in net inflows in the main Bitcoin ETFs. Understanding The Selloff How is it possible that the nomination of a new Fed Chair, with a very likely dovish policy, led to a crypto selloff? Aren't lower interest rates a tailwind for risk assets? Well, it turns out the answer is no. You see, there are two different policy levers. On one hand, you have interest rates, which are set mainly via the fed funds target range (currently at 3.50% - 3.75%). On the other hand, you have the Fed's balance sheet, whi...