CryptoQuant CEO Ki Young Ju stated that if the bubble of artificial intelligence ( AI ) were to burst, it might not actually have a significant impact on Bitcoin ( BTC ).
This well-known crypto analyst stated that this leading cryptocurrency was hardly involved in the significant rise in the stock price of AI.
Therefore, a significant correction in the AI sector may be relatively harmless to Bitcoin.
“I don’t think the bursting of the AI bubble will cause too much harm to BTC,” Ju stated in a recent X post.
He speculates that investors who wanted to profit from the AI craze may have sold their Bitcoin holdings in order to fund their investments in AI stocks.
Nowadays, as concerns about the overvaluation of AI in the market intensify, funds may be flowing in the opposite direction.
"Now might be the time to switch back to Bitcoin," wrote Ju.
However, he does not want to be perceived as claiming that the collapse of the AI market would be beneficial for such leading cryptocurrencies.
“A collapse of AI may not necessarily be positive or negative for BTC. The two seem to be unrelated,” he added.
Why are investors worried about the AI bubble?
The rapid rise of artificial intelligence has sparked one of the largest investment booms in the history of modern technology.
In many ways, this reminds one of the internet bubble period at the end of the 1990s.
Tech companies are investing tens of billions of dollars in data centers, top-tier chips, and increasingly complex AI models.
Are these massive investments reasonable? Skeptics argue that it is still unclear whether these funds will generate sufficient income to justify the investment.
AI has not yet demonstrated that its business model is capable of consistently producing impressive results.
In addition, the growing complexity of the AI industry is also a cause for concern.
Some tech companies invest billions of dollars in AI developers, who in turn use a large portion of that capital on computing infrastructure and services, which ultimately come from the very companies that initially invested in them.
However, the bursting of the AI bubble does not necessarily mean the end of AI technology.
For example, during the bursting of the internet bubble, a large amount of speculative capital evaporated, yet the internet continued to transform the world economy.
