BIG NEWS -Future of Disruptive Tech is being rebranded. We are changing our name to “Next Wave.” So if you see an email in your income from “Next Wave” please don’t be alarmed "(or hit spam).

_{Read Time: 10 Minutes}

Today’s Menu

• AI investment bubble faces reality check as MIT reveals zero returns for 95% of companies

• Crypto markets show fragility ahead of critical Jackson Hole speech

Markets

TODAY IN AI

AI investment bubble faces reality check as MIT reveals zero returns for 95% of companies

Wall Street's AI enthusiasm has encountered a harsh reality check following an MIT study revealing that 95% of companies are receiving "zero return" from their AI investments. Combined with Sam Altman's admission that investors may be getting "over excited" about the sector's prospects, the findings triggered significant selling across tech stocks, with Nvidia falling 3.5% and Palantir plummeting 9.4%.

The study challenges the prevailing narrative that AI adoption automatically translates to improved business outcomes, suggesting that most companies are struggling to implement AI effectively or generate measurable returns from their investments. This disconnect between AI hype and practical results has forced investors to reassess valuations across the sector.

The tech-heavy Nasdaq posted its biggest single-day drop since August as reality set in about the gap between AI promises and delivery. Altman's cautionary comments about investor excitement compound concerns that the AI sector may be experiencing bubble-like conditions similar to previous technology booms.

The selloff highlights how quickly sentiment can shift when fundamental assumptions about new technologies are challenged by empirical evidence. Companies that have built their valuations on AI potential rather than proven results face particular vulnerability as investors demand concrete evidence of AI-driven value creation.

TODAY IN CRYPTO

Crypto markets show fragility ahead of critical Jackson Hole speech

Bitcoin and Ethereum have recovered slightly from Tuesday lows, though both CoinDesk 20 and CoinDesk 80 indexes remain lower over 24 hours, indicating broad market weakness. Among the top 100 cryptocurrencies, only OKB and LINK have gained more than 3%, reflecting widespread investor caution ahead of Fed Chairman Jerome Powell's Jackson Hole speech.

QCP Capital warns that "the recent sell-off suggests that short-term positioning remains fragile. Risk assets may be vulnerable to further swings if Powell strikes a hawkish tone or if upcoming labor or inflation data surprise to the upside." The latest Bitcoin decline has been driven by profit-taking from short-term holders, similar to patterns observed in January that preceded significant selling pressure.

Institutional sentiment appears increasingly uncertain, with spot Bitcoin and Ethereum ETFs registering almost $1 billion in total net outflows on Tuesday. This substantial capital withdrawal suggests institutional investors are reducing crypto exposure ahead of potential Fed policy signals that could impact risk asset appetite.

According to Nansen's Nicolai Sondergaard, "at this stage, the market broadly expects cuts, so much of that is already priced in. If Powell delivers exactly what's anticipated, crypto could see sideways-to-slightly-bearish action, a classic 'sell the news' dynamic." Markets will likely rally only if Powell signals deeper or faster-than-expected rate cuts, creating asymmetric risk ahead of the speech.

Want to share The Future of Disruptive Tech with a friend, family member, or coworker? Pass this link along to them.

Thanks for reading!

Until next time,

Damon James