Bank of America warns of risks in the AI capital cycle
A Bank of America report shows that hyperscalers’ expected capital spending has jumped from $330 billion to $1 trillion, equal to about 3% of U.S. GDP. AI token prices have fallen around 50% since the summer, and growth in usage may not be enough to cover revenue.
Market-maker liquidity in the AI sector has dried up, while selling pressure from token unlocks persists. These AI leaders are unlikely to mount a strong short-term rebound and will probably retest their previous lows. If key support breaks, further declines could accelerate the gradual slide in AI-related assets. Until funds flow back into major cryptocurrencies, it will be hard for the AI sector to rally on its own.
For those holding AI tokens, what’s your cost basis—and are you willing to buy the dip this time?
$TAO $BTC $ETH
A Bank of America report shows that hyperscalers’ expected capital spending has jumped from $330 billion to $1 trillion, equal to about 3% of U.S. GDP. AI token prices have fallen around 50% since the summer, and growth in usage may not be enough to cover revenue.
Market-maker liquidity in the AI sector has dried up, while selling pressure from token unlocks persists. These AI leaders are unlikely to mount a strong short-term rebound and will probably retest their previous lows. If key support breaks, further declines could accelerate the gradual slide in AI-related assets. Until funds flow back into major cryptocurrencies, it will be hard for the AI sector to rally on its own.
For those holding AI tokens, what’s your cost basis—and are you willing to buy the dip this time?
$TAO $BTC $ETH