Anthropic AI models cleared for global use; crypto faces record outflows
The Trump administration lifted export controls on Anthropic's advanced AI models, Fable 5 and Mythos 5, while Bitcoin ETFs experienced their worst month on record with $4.5 billion in June outflows.
The AI sector sees a significant development as Anthropic's Fable 5 and Mythos 5 models are now accessible globally after the US government lifted export controls. This move, following weeks of restrictions, is expected to accelerate AI deployment and investment, particularly as major tech companies like Microsoft continue to prioritize AI spending despite broader layoffs. Concurrently, the cryptocurrency market is grappling with substantial outflows from Bitcoin ETFs, signaling a challenging period for digital assets.
AI Sector Rebounds
Anthropic's advanced AI models, Fable 5 and Mythos 5, are back online for global users after the Trump administration rescinded export controls. This decision comes after a cybersecurity finding triggered a temporary freeze, impacting the company's trajectory ahead of a crucial IPO. The restoration of access is a positive signal for the AI ecosystem, which has seen significant investment, including a $49 billion AI fund raised by UAE's MGX.
Despite some enterprises throttling AI spending, as noted by UBS, the overall momentum in AI development remains strong. Microsoft, for instance, is reportedly planning thousands of layoffs but continues to invest heavily in AI, underscoring the strategic importance of the technology. This focus on AI is reflected in the market, with the Technology sector leading gains at +2.7%.
Crypto Market Downturn
The cryptocurrency market is facing headwinds, with Bitcoin ETFs experiencing their worst month ever in June, shedding a record $4.5 billion. This outflow, which included nine consecutive days of redemptions, pushes year-to-date totals to $5.5 billion. Bitcoin itself is down 2.96% to $58,533, with other major cryptocurrencies like ETH and SOL also seeing declines.
The significant outflows challenge the theory that increased institutional adoption through ETFs would stabilize the crypto market and make sell-offs less painful. This downturn occurs even as President Trump's financial disclosures reveal over $1 billion in crypto earnings in 2025, highlighting the volatile nature of digital assets despite high-profile engagement.
Economic Indicators & Energy
Broader economic data indicates a mixed picture. US employers announced a 4% year-over-year fall in June layoffs, according to the Challenger Job Cuts report, suggesting some labor market resilience. However, the energy sector faces uncertainty, with oil prices wobbling as US-Iran talks break down, casting doubt on the peace process and the normalization of traffic through the Strait of Hormuz. Goldman Sachs also warns of a potential oil supply glut in 2027.
Meanwhile, the US is projected to spend $50 billion on coal and natural gas power generation this year, surpassing China's investment in these fuels for the first time in decades, driven by soaring electricity demand, particularly from the AI revolution. This contrasts with rising energy bills in the UK, where the energy cap changes mean typical annual household bills rose by 13% under Ofgem's new cap.
The Read-Through
The market open will likely reflect the dichotomy between the advancing AI sector and the struggling crypto market. Positive sentiment around AI, fueled by Anthropic's regulatory clearance and continued tech investment, could support technology stocks, which are already showing strength (SPY +0.74%, QQQ +1.61%, AAPL +2.61%, NVDA +2.46%). However, the significant outflows from Bitcoin ETFs may weigh on investor confidence in digital assets, potentially leading to further declines in the crypto space.
Investors will also be monitoring the broader economic indicators, particularly any updates on employment and inflation, which could influence central bank policy. The energy sector's volatility, driven by geopolitical tensions and shifting investment in traditional fuels versus renewables, will also be a key area of focus, impacting industrial and materials stocks.