Redirecting the "hot" money of speculative investors into artificial intelligence-related stocks is damaging the cryptocurrency market. This was stated by the economic director of BIT Mining Yuwei Yang in an interview with The Block.
In his opinion, the stock market now views every news about AI as bullish, so "in light of the emerging FOMO, the cryptocurrency has lost its charm."
"The amount of "hot" money on the market is limited, and now they are aimed at AI. Until the cryptocurrency is able to promote some convincing narrative, the sector will continue to trade sideways in anticipation of major shocks," Yang added.
Earlier, Juan Leon, senior analyst for cryptocurrency research at Bitwise, predicted that by 2030, global GDP will increase by $20 trillion due to the digital asset and artificial intelligence industries.
The expert named the partnership of miners and AI companies as an option for cooperation between the two industries.
This forecast is consistent with PricewaterhouseCoopers' estimate that artificial intelligence and cryptocurrency will contribute $15.7 trillion and $1.8 trillion to the global economy over five years, respectively.
Digital asset market participants have also begun to use neural networks more often to interact with DeFi. According to the head of the Nuklai ecosystem, Jochem Gerber, AI automation of transactions will significantly affect blockchain operations:
"High-frequency traders use artificial intelligence to make trades in milliseconds. This approach is applied in the decentralized finance market. Over the next decade, AI will integrate into DeFi and improve operations in DAO while maintaining transparency," Gerber stressed to The Block.
Recall that in June, the mining company Core Scientific signed a 12-year contract with CoreWeave to provide an infrastructure with a capacity of 200 MW for hosting Nvidia GPUs for AI computing.
In the same month, Elliptic experts noted an increase in the use of artificial intelligence in crypto crimes. AI has also been taught to detect money laundering through bitcoin.