If AI Crashes, Does Bitcoin Rise? Examining the BTC–AI Relationship

[Cryptomultiplier]

There is a lot of money being invested in real estate, if real estate investment stops, will it have any impact on Bitcoin? This is kind of a stupid question.
Is there any relationship between AI and Bitcoin at all? I don't see any relationship that would say that Bitcoin will be affected by AI.

We have seen Bitcoin remain stable even during times of global economic instability and there has been no long-term impact on Bitcoin. So why do you think AI can affect the Bitcoin market? As long as something is affecting people's demand or their ability to save, we will not see any impact on the Bitcoin market.

On a contrary, I think Ai will exert an impact on Bitcoin and not because they have any direct relationship, but because they exist in same liquidity pool all around the world.
So it's kinda accurate to say that with the amount of resources AI consumes right now, more capital and energy input is concentrated there, but Bitcoin on the other hand, it has no balance sheet liabilities and also has zero maintenance cost on its head.

So we would see more capital investment and energy being directed into the Bitcoin market even though the decision might not have same impact on every timeline in the world.

[Woodie]

Having seeing alot of news articles reporting of Bitcoin miners quitting this mining business  to invest in AI.. this tells us what we know, bitcoin for them is no longer profitable especially that price dropped sharply and has not recovered for a while and on top of that running costs aren't helping them either. Honestly with AI investments proving to come to their rescue, I see no reason for them to stay, it's just business at the end of the day.

 

If AI Crashes, Does Bitcoin Rise?

Not directly related, but if during this crash Bitcoin happens to be bullish.. of course people will jump ship it's just a human thing  and the herd mentality in us will always want us to be associated with something doing Great.

[Moreno233]

AI has no known correlation to Bitcoin so I don't know how crash of AI is going to have any impact on Bitcoin. I know people have a way of conjuring many hypothesis which is what you are doing with this post but I still want to maintain that AI does not have any impact on Bitcoin. What affects Bitcoin is ETFs and not AI.

[fullfitlarry]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

AI is something that we can't really deny as it's getting bigger and might have a bigger effect on society as a whole. But as far as Bitcoin goes, we can say that all that is happening around the world has a effect on it. Just depend on how the impact could be specially if there are noises from behind and it is being used by trolls to spread FUD.

So I think it will have a effect on the price. But the thing with Bitcoin is that it is so resilient that it can bounce back. We can go back in March 2020, during the pandemic. If my memory serves me right, it plummeted to more than 40% during the first week of the announcement of Covid-19. So it's a huge impact, nevertheless it didn't stop Bitcoin into reaching new all time high in the bull run.

[shinratensei_]

AI has no known correlation to Bitcoin so I don't know how crash of AI is going to have any impact on Bitcoin. I know people have a way of conjuring many hypothesis which is what you are doing with this post but I still want to maintain that AI does not have any impact on Bitcoin. What affects Bitcoin is ETFs and not AI.

AI does have impact to bitcoin, but not in a good way. Institutional investors classify bitcoin as high-beta risk technology for some reason, the same as AI. When they think AI is about to crash, they think crypto will crash too even though lately both showing divergence, in South Korea when KOSPI was tanking there was capital flight from KOSPI to crypto and the local exchange is facing sudden volume increase. The relation? still hard to deduce but there is a relationship, global bitcoin price action is showing difference to local volume like the ones in South Korea.

It's hard to say there is no relationship when the capital that went into AI was coming from crypto when AI was acting like liquidity sponge, absorbing every capital from technology sectors.

[Lexandroove]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

AI boom no doubt powers across board every area of the economy - crypro incusive, however it must be noted that AI is never one of the critical highlights of Bitcoin so in the event of a crash in AI, it can be expected to only jolt the value of Bitcoin as would  any other economic factor but that would be of no major effect in the valuation of Bitcoin in the long run as the market would sooner than later absolve that and move on. Things that can really hurt Bitcoin are when it stops to be decentralized, when it is no longer trustless and when the community stop believing in it and not on tools used to work on it..

Well said. I know that AI can influence Bitcoin, especially through liquidity, capital flows, and market sentiment, but It doesn't define Bitcoin's core value proposition.
In the long run, BTC's resilience depends far more on other factors, like decentralisation, trustlessness, scarcity, and continued network adoption being amongst others. So you've got a very good point.

[YellowSwap]

AI has been helpful so far, it has a great impact on the economy too, both negative and positive but that's it, AI doesn't help Bitcoin in any way, the only thing that AI did better in crypto space is

1. Fishing out every vulnerabilities that was never detected in the past years.
2. Few projects that are not Bitcoin benefits from AI, like data and agents..
3. Some projects implements AI for better responses online and for staking and trading abilities got improved.

That's all, Bitcoin and only few others don't need AI implementation anywhere.