AI automation threatens software firms, may pressure crypto market: Analysis

The spread of AI automation is threatening the revenue of software companies and driving down their stock prices, which may in turn be creating selling pressure on the highly correlated cryptocurrency market, according to an analysis by BeInCrypto. The outlet noted that the flow of funds into the AI market, exemplified by Anthropic's $30 billion funding round, is emerging as a risk for crypto. As capital concentrates in AI and financial conditions for software companies tighten, these firms may reduce borrowing and increase asset sales. This situation could affect liquidity across all risk assets, including cryptocurrencies. BeInCrypto explained that there are concerns Bitcoin could be negatively impacted by its correlation with the U.S. stock market and liquidity pressure from a contraction in private credit.