AI-Hype May Dampen Returns From Bitcoin (BTC) and Ethereum (ETH), New Report Suggests

The stock market now regards every piece of AI news as bullish, and in light of the resulting FOMO, “crypto has lost its charm,” The Block reported quoting BIT Mining Chief Economist Youwei Yang.

Recent investor enthusiasm for artificial intelligence (AI) could limit gains for major cryptocurrencies like Bitcoin and Ethereum, according to a new report.

Here's what happened: Every piece of AI news is now considered bullish by the stock market, and in light of the resulting FOMO, “crypto has lost its charm,” The Block reported, citing BIT Mining Chief Economist Youwei Yang.

“There is only a certain amount of hot money in the market and it is devoted to AI now, until crypto can breakout some convincing narrative or constructive advancement, in the meantime, crypto will just be trading sideways waiting for major market shocks,” Yang told The Block.

The bearish outlook contrasts with a win-win scenario predicted by senior research analyst Juan Leon, who said the intersection of AI and cryptocurrency could add a combined $20 trillion to global GDP by 2030.

Leon noted how Bitcoin ( BTC-USD ) miners, which are equipped to process and store massive amounts of data, are stepping in to fill the global shortage of data centers. AI cloud provider CoreWeave recently offered to buy Bitcoin miner Core Scientific for $1.6 billion, following a $3.5 billion deal to host AI services in its data centers.

Price action: At last check, AI-related cryptocurrencies had a market capitalization of over $26 billion, according to CoinGecko. Leading the pack were NEAR Protocol ( NEAR-USD ), Fetch.ai ( FET-USD ), and Render ( RNDR ), with total valuations of $5.2 billion, $3 billion, and $2.8 billion, respectively.

See More: Is $0.10 Really Dogecoin’s ‘Next Stop’?

This content was partially Benzinga Neuro and was reviewed and fact checked by Benzinga editors.

News source：https://www.kdj.com/cryptocurrencies-news/articles/aihype-dampen-returns-bitcoin-btc-ethereum-eth-report-suggests.html

The above is the detailed content of AI-Hype May Dampen Returns From Bitcoin (BTC) and Ethereum (ETH), New Report Suggests. For more information, please follow other related articles on the PHP Chinese website!