Prospect of AI-driven monetary easing… “Liquidity expansion could be a tailwind for Bitcoin”

An analysis suggests that if artificial intelligence (AI) triggers disruption or volatility in the labor market and leads central banks to ease monetary policy, it could create a favorable environment for Bitcoin (BTC).

According to cryptocurrency-focused media outlet Cointelegraph on the 2nd, Greg Cipolaro, head of research at crypto services firm NYDIG, said in a recent report that AI is a “general-purpose technology,” like electricity, and assessed that its macroeconomic ripple effects will be a key variable influencing Bitcoin’s price trajectory.

Cipolaro said, “If AI-driven growth coincides with expanding liquidity and a low real interest rate environment, it could be a supportive backdrop for Bitcoin.” He added, however, “If growth pushes up real interest rates and evolves in a way that reinforces monetary tightening, Bitcoin could face headwinds.”

In particular, he analyzed that “if AI causes labor-market disruption or economic volatility and leads to fiscal expansion and monetary easing, the resulting liquidity shock is highly likely to be positive for Bitcoin.”

AI’s spread is already seen as affecting corporate restructuring. Block, the payments company led by Jack Dorsey, has said it would cut about 40% of its workforce, citing the adoption of AI.

Still, there are warnings that the transition may not be smooth. In an August report last year, Goldman Sachs Research estimated that AI could replace up to 7% of U.S. workers, while also noting the potential for new job creation.

Cipolaro emphasized that technological innovation has historically taken hold through processes of integration and adaptation. He explained, “Disruptive change doesn’t mean it’s painless, but the equilibrium for new technology has been integration, not extinction,” adding, “AI is also likely to follow the same path.”

Meanwhile, AI adoption is spreading across the digital-asset industry as well. Coinbase launched “Payments MCP” last October to enable AI agents to access on-chain financial tools. The industry believes that the combination of AI and blockchain could create new opportunities for digital assets, while also bringing additional risk factors.