Tech stocks are getting hammered lately, and there's a peculiar irony at play. The software giants that should theoretically benefit from the AI wave are actually taking some serious hits. Why? Because markets are wrestling with what researchers call the 'Innovator's Dilemma'—the paradox where breakthrough innovations threaten to cannibalize existing business models.

Here's what's happening: traditional software companies built their empires on subscription models, legacy infrastructure, and decades of customer lock-in. Now AI is disrupting that playbook overnight. Investors aren't sure if these companies can pivot fast enough, or whether AI upstarts will simply eat their lunch. That uncertainty is translating into sell pressure.

For crypto investors paying attention to macro trends, this matters. When traditional tech falters, capital flows shift. Some money rotates into more speculative assets, while risk appetite cools across the board. The broader market psychology—whether investors are feeling FOMO or fear—has spillover effects on how crypto assets perform during these cycles.