The tech sector's frothy valuations are emerging as the market's biggest headache heading into 2026. In a recent survey, 57% of institutional investors identified AI sentiment collapse as the primary risk—if hype around artificial intelligence deflates, so too could the bloated stock prices that have been riding the wave.

But that's just the starting point. Broader macro fears are creeping in as well. Investors are increasingly worried about the Federal Reserve losing its policy independence. Geopolitical tensions, rate volatility, and institutional credibility all hang in the balance. When central banks lose autonomy, markets panic. Period.

What does this mean for crypto traders? A tech washout could trigger flight-to-safety moves, dragging altcoins down with the broader equities sell-off. Meanwhile, Fed independence concerns could either fuel Bitcoin as a hedge or spark risk-off liquidations depending on the scenario. Watch these pressure points closely—they're likely to dictate market direction throughout the year.