Expert: Cryptocurrencies may continue to trade sideways! Funds are pouring into AI concept stocks

An economist believes that speculative investors turn their hot money into AI related stocks, which is detrimental to the cryptocurrency market. According to BITMiningChief Economist Youwei Yang, the stock market now treats every AI news as bullish and has triggered a "fear of missing out" (FOMO) mentality, making cryptocurrency investment attractive It pales in comparison. Youwei Yang said: The hot money in the market is not "inexhaustible", and now almost all of it is flowing to AI, unless there are some breakthrough and convincing themes in cryptocurrency, or there is construction Sexual progress and development, otherwise, during this period, cryptocurrencies can only trade sideways, waiting for major market-shaking news.

"AI Combined with Cryptocurrency" Big Trend

However, BitwiseSenior Cryptocurrency Research AnalystJuan Leon believes that the intersection between AI and cryptocurrency is forming a "big trend", It is expected to add as much as $20 trillion to the global economy. He said: The intersection of AI and cryptocurrency will be bigger than people think. By 2030, these two industries may add 20 trillion US dollars to the global GDP. This prediction is in line with PwC’s estimate, that is, by 2030, AI and cryptocurrency are expected to add US$15.7 trillion and US$1.8 trillion to the global economy respectively, with the overall combined effect reaching more than US$20 trillion.

Bitcoin miners are entering the AIfield

The race for "AIsupremacy" is leading to unprecedented shortages of data centers, AIchips and power. However, Bitcoin mining requires a lot of resources, including powerful chips, state-of-the-art cooling systems, and critical infrastructure, which AI companies are in desperate need of. AICloud operator CoreWeave earlier this month proposed to acquire Bitcoin mining company CoreScientific for US$1.6 billion, with a premium of up to 55%, but was rejected by the latter. The two companies previously had a 12-year, US$3.5 billion cooperation agreement, and CoreWeave can provide its AI-related services in CoreScientific’s data center. As for other cryptocurrency mining players, such as Hut8 and IREN, they have also expanded their business development to AI in recent months, seeking to expand revenue after the Bitcoin halving in April.

Leveraging AI for DeFiTrading

High-frequency traders are now also leveraging AI to execute decentralized finance (DeFi) transactions in extremely short periods of time. NuklaiEcosystem Head Jochem Herber stated that this automation will have a significant impact on DeFi and the operation of decentralized autonomous organizations in the next decade. He said: High-frequency traders are using AI to execute trades in thousandths of a second. This approach is being adopted in the DeFi market. AI can automatically execute complex trading strategies, predict market trend analysis patterns, and optimize transactions without human intervention. He said: In the next 10 years, AI will be integrated into the DeFi field to improve the operation of decentralized autonomous organizations while maintaining transparency.

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