Wall Street has invested nearly $800 billion in artificial intelligence through major tech companies, creating a speculative bubble interconnected with cryptocurrencies and global sovereign debt. If this AI bubble bursts, a deleveraging effect could trigger massive sell-offs of Bitcoin and stablecoins, which hold traditional reserves like US Treasury bills. QCP Group notes that Bitcoin lost the allocation battle to AI during the upswing and would not be insulated during the downswing. According to Arthur Hayes, the end of the bubble could ultimately push capital toward gold and Bitcoin, whose scarcity narrative may prevail over the collapse of tech bubbles.
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