Bitcoin, Ethereum and XRP Extend Losses. Why the AI Scare Is Weighing on Cryptos. — Barrons.com
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By Alex Kozul-Wright
Bitcoin fell below $65,000 Tuesday after a research note was published that imagined a U.S. economy laid waste by artificial intelligence.
The price of Bitcoin was flat for the day as of 4 p.m., at around $64,473, according to Dow Jones Market Data.
Elsewhere, the world's second most popular cryptocurrency Ethereum was down about 0.7%, while popular alt-coin XRP was down 0.6%.
The move appears to have been triggered by a weekend report from Citrini Research — which quickly went viral — on labor market strains linked to artificial intelligence.
The report painted a bleak picture in which Al inspires a race to the bottom in knowledge-based work, which would trigger a wave of unemployment.
The report outlined "a hypothetical scenario in which AI adoption drives the U.S. unemployment rate into double digits by mid 2028," said Deutsche Bank strategist Jim Reid.
"The net result [of the note] was a renewed selloff in stocks perceived to be at risk from AI disruption," he added.
That kind of broad risk recalibration tends to be a lag on cryptocurrencies — digital assets continue to remain sensitive to the same economic forces which affect equity markets.
Cryptocurrencies have struggled to find upward momentum so far this year. It may take something drastic to reverse their fortunes.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
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source: https://www.tradingview.com/news/DJN_DN20260224001664:0/