As per CoinEdition, concerns over an AI bubble are growing as tech valuations wobble, affecting the crypto market. High debt and slowing AI demand could trigger a risk-off sentiment, with Bitcoin and other cryptocurrencies feeling the impact. The correlation between crypto and tech has surged to ~80%, the highest in six months. When the Nasdaq dropped 4% intraday, Bitcoin fell below $83K. Investors are worried about unsustainable AI spending, high interest rates, and shifting market psychology. Billionaire Peter Thiel has sold all his Nvidia shares, and Bitcoin ETFs are seeing heavy withdrawals. Analysts suggest three possible outcomes for the AI cycle: a soft landing, a gentle correction, or a harsh crash, all of which imply continued volatility for crypto. Bitcoin and the broader market are currently down, with Bitcoin falling to $81K and Ethereum to around $2.6K, triggering over $2 billion in liquidations.
AI Bubble Fears Rise as Tech Valuations Wobble, Impacting Bitcoin and Crypto
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