Based on DL News, Bitwise CIO Matt Hougan and European head of research André Dragosch outlined two major risks that could push Bitcoin into a new bear market. The first is a collapse in AI stock valuations, which have become disconnected from fundamentals. The second is a regulatory reversal in the US, particularly with stalled progress on the Clarity Act. Hougan estimates a 20% chance of regulatory backsliding, while Dragosch warned that a burst in the AI bubble could trigger a broad sell-off in risk assets, including crypto. Bitcoin has already lost over 20% in the past two months, nearing bear market territory.
Bitwise Warns Bitcoin Could Enter New Bear Market If AI Bubble Bursts or US Regulation Reverses
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