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Tether CEO "AI bubble, Bitcoin's biggest risk next year"

JOON HYOUNG LEE

Summary

Paolo Ardoino, Tether CEO, said the AI bubble is Bitcoin's biggest risk next year.
Ardoino said a stock market bubble stemming from the AI bubble could affect Bitcoin.
He forecast there would be no sharp correction of around 80% like in 2022 or early 2018.

Paolo Ardoino, Tether (USDT) chief executive officer (CEO), cited the 'artificial intelligence (AI) bubble' as Bitcoin's (BTC) biggest risk next year.

According to Cointelegraph on the 18th (local time), Ardoino appeared on a podcast and said, "Bitcoin still has an excessive correlation with capital markets." Ardoino said, "(Bitcoin) could be affected by an AI bubble or by a stock market bubble expected to form amid the current AI boom," and "aside from next year's AI bubble-related risks, increased adoption by governments and pension funds would leave no major risk factors for Bitcoin's performance."

He also offered the view that even if a bear market comes, the decline would not be large. Ardoino said, "A sharp correction of around 80% like the ones seen in 2022 or early 2018 will no longer occur."

He also mentioned digital asset treasury (DAT) firms. Ardoino said, "I'm not very optimistic about companies that are simply DAT firms," and "DAT firms must have excellent operational capabilities."

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