AI vs Bitcoin: Novogratz’s Warning Signals Massive Market Shake-Up

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In the latest market data, it has been observed that Bitcoin and the U.S. 100 NASDAQ index traded in sync, both gaining 1 percent in the past 24 hours. While Bitcoin continued to hover around the $27k mark, the short-term trend for the cryptocurrency remains uncertain despite positive news about crypto adoption in Hong Kong and the liquidity crunch issues caused by the debt crisis.

Related: Crypto Firms Vying for Hong Kong Licenses To Attract Retail Traders – Coinpedia Fintech News

Novogratz’s Crypto Market Insights

During an interview on Thursday with CNBC Squawk Box, billionaire Michael Novogratz, the Chief Executive Officer at Galaxy Digital, shared his perspective on Bitcoin and Ether as long-term and risk-adjusted investments. Novogratz emphasized that although one shouldn’t allocate as much investment to Bitcoin as they would to JPMorgan stock, the volatility-adjusted returns of Bitcoin have outperformed JP Morgan.

Bitcoin Predictions

Novogratz predicts that Bitcoin will spearhead a rally in the crypto market later this year when the Federal Reserve initiates interest rate cuts. However, he acknowledged that the crypto industry has experienced fewer institutional cash inflows since the FTX and Alameda implosion. Nonetheless, Novogratz highlighted the increased accumulation of coins by small retail investors in recent times. Additionally, the surge in attention towards Artificial Intelligence (AI) has diverted the focus of many investors in the past few months.

Also Read Crypto Bull Run: Economist Alex Krüger Predicts Bullish Outlook for Bitcoin and Ethereum

Are We In An ‘AI Bubble’?

Novogratz expressed his views on the current market scenario by stating, “We are in an A.I bubble. Bubbles always happened around things that fundamentally changed the way we live. They’ve almost happened around the real thing. Just the story is so powerful and people buy way in advance and get caught up in the frenzy.”