Saxo Bank: AI threats, tariffs fuel risk-off mood, driving crypto down

Danish investment bank Saxo Bank has stated that concerns over the disruptive threat of artificial intelligence (AI) and uncertainty surrounding U.S. tariffs are dampening investor sentiment, leading to a downturn in both cryptocurrency and broader risk-asset markets, Walter Bloomberg reported. The bank noted that this risk-off sentiment has directly translated into a decline for cryptocurrencies. It also pointed to net outflows from U.S. spot Bitcoin and Ethereum ETFs as an indicator of waning risk appetite among institutional investors. Saxo Bank concluded that cryptocurrencies are currently trading based on the sentiment of the broader investment market rather than their own fundamentals.