CryptoQuant CEO Ki Young Ju has said that a potential bust in the artificial intelligence (AI) bubble could actually be largely harmless for Bitcoin (BTC).
According to the prominent crypto analyst, the leading cryptocurrency has largely failed to participate in the massive run-up in AI stock prices.
As a result, a steep correction in the AI space could be relatively harmless for Bitcoin.
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"I don't think an AI bubble burst would hurt BTC much," Ju said in a recent post on X.
He speculated that investors looking to profit from the AI boom may have already dumped their Bitcoin holdings to finance their AI stock investments.
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Now, as worries about the extent of AI overvaluations grow, the reverse rotation could be in play.
"Now it may be time to rotate back into Bitcoin," Ju wrote.
But he didn't want to be seen as claiming that an AI market crash would be bullish for the leading cryptocurrency.
"An AI crash isn't necessarily bullish or bearish for BTC. They seem unrelated," he added.
Why are investors worried about an AI bubble?
The meteoric rise of artificial intelligence has spurred one of the biggest investment booms in modern technology.
In many ways, it's reminiscent of the dot-com era of the late 1990s.
Tech companies are spending hundreds of billions on data centers, top-notch chips, and increasingly sophisticated AI models.
Do these massive investments make sense? Skeptics say it's not clear whether the money will be able to generate enough revenue to make it all worth it.
AI companies have yet to prove that their business model is capable of producing impressive results on a consistent basis.
Moreover, the growing complexity of the AI industry is a significant concern.
There are technology companies that invest billions in AI developers, which in turn invest a lot of their own money in the form of computing infrastructure and services from the companies that have invested in them.
That being said, a burst of the AI bubble doesn't necessarily mean it's the death of AI technology.
For example, during the dot-com crash, a massive amount of speculative money was vaporized, but the internet continued to change the world economy.