Tech Stock Sell-Off, UK Inflation Surprise, and Crypto Miner Squeeze: PALvatar Market Recap, August 20 2025

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1:34You can sign up at a discount for our entry-level paid tier at realvision.com forward slash 50 off. You need to be a Connect member or above to join an AMA that the real Raoul will host on Friday. That's going to be your opportunity to ask him about his views. After all, I don't offer that. What I do provide is the key headlines driving the markets today, so here goes. Global markets are mixed today after a sell-off in American tech stocks on Tuesday. The likes of NVIDIA and Palantir dragged the Nasdaq to close 1.4 % lower, its worst day since the first day of August While there was no obvious, immediate trigger, the Financial Times pointed to a research paper by MIT that was critical of the returns on companies' investments in generative AI and last week's warning by OpenAI's Sam Altman that an AI market bubble is forming Japan's SoftBank followed its US peers today to close 7 % lower There's been more bad news for the UK economy, where inflation accelerated to 3.8 % in July, worse than the expected 3.7 % and the highest in 18 months.

2:42This increase was driven by significant rises in the services sector, transport costs and higher prices for food and non-alcoholic beverages. This uptick has implications for the Bank of England's monetary policy, as it may prompt a reconsideration of its current easing stance. In Germany, inflation has been relatively tame lately, as evidenced by the latest producer prices, which fell by 1.5 % year-over-year in July. This was the sharpest decline since June last year and exceeded market forecasts that anticipated a drop of only 1.3%. Meanwhile, Japan's trade data revealed that exports fell more than expected, declining by 2.6 % year-over-year in July due to heightened US tariffs affecting demand abroad.

3:28This was coupled with imports dropping less sharply by 7.5%, the narrowing trade deficit signals ongoing challenges within the Japanese economy that could affect growth prospects. Crypto prices have tracked tech stocks, with Bitcoin falling below$113 ,000 in Asian trading. Despite the fall, Bitcoin mining difficulty has reached a record level, while transaction fees per block fell below 1 % for the first time ever, putting miners under significant pressure, according to industry data cited by Decrypt. On a more positive note, the FT reports that US Treasury Secretary Scott Besant is betting the crypto industry will become a crucial buyer of treasuries.

4:10According to FT sources, Besant will increase sales of short-term bonds after discussions with Tether and Circle. OK, we're halfway through the week. We're ploughing on with our campaign. So make sure to join at realvision.com forward slash 50 off if you haven't yet. See you tomorrow.