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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid shifting global capital flows, venture capitalist Chamath Palihapitiya argues that Bitcoin is facing mounting pressure as speculative liquidity migrates toward prediction and equity markets. According to reports, Palihapitiya noted that the energy currently powering crypto mining operations is becoming increasingly more valuable when redirected to support artificial intelligence (AI) infrastructure, creating a structural hurdle for the digital asset's long-term growth.
These warnings come as Big Tech companies accelerate their race to secure data centers; market data shows firms like Nvidia and Microsoft are aggressively scaling energy-intensive infrastructure, raising the opportunity cost for crypto miners. Compared to previous quarters, expert analysis suggests a rotation in retail risk appetite toward AI-linked equities, which have driven the S&P 500 to record highs per Bloomberg market data.
Looking ahead, digital asset markets remain highly sensitive to US inflation data and its impact on Fed policy. Traders will be closely watching the speech by Fed Governor Waller scheduled for later today, followed by tomorrow's Consumer Price Index (CPI) release, as these catalysts will determine the relative attractiveness of high-risk assets against emerging investment alternatives.