Bitcoin, a market replica of 1996 is coming..."AI will drive prices up"

▲ Bitcoin (BTC), Dot-com Bubble/AI-generated image

The virtual asset market is showing signs of an explosive bull run, forming technical and macroeconomic structures very similar to 1996, a period of historic long-term prosperity brought about by the internet revolution in the mid-1990s.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Venture Capital, emphasized in a video uploaded to his YouTube channel on April 26 (local time) that virtual asset investors should soberly compare the current boring sideways market to the situation in 1996. Gambardello explained that the point when individual investors, exhausted by a prolonged market stagnation, left was, in fact, the starting point of a massive surge. He diagnosed that the entire market, including Bitcoin (BTC), is currently not at the end of a bubble, but at the starting line of new prosperity.

The emergence of Artificial Intelligence (AI) technology parallels the productivity revolution brought about by the internet in the 1990s. In 1996, the internet was still a technology used by only a few segments, but it soon became widespread, dramatically increasing corporate productivity. Currently, AI is also past its initial stages and on the verge of widespread adoption, leading to increased corporate profits and capital expenditures. Gambardello pointed out, "We are in the early stages of the technology adoption curve, and the market always underestimates exponential growth."

The macroeconomic environment is also becoming favorable. The Federal Reserve (Fed) previously implemented strong tightening in 1994, raising interest rates seven times, but from 1996, liquidity gradually improved, pushing up asset prices. As of 2026, liquidity has also passed through intense tightening and entered a phase of bottoming out and stabilization. The rise of the Purchasing Managers' Index (PMI) above 50, indicating expansion, is interpreted as a strong signal for a virtual asset bull market.

During periods when individual investors are sidelined, institutional investors are quietly accumulating assets. Even in 1996, when the stock market was moving sideways and causing boredom, long-term capital was already building positions. Currently, the virtual asset market is also seeing institutions filling the void left by individual investors, who are exhausted by the fluctuations since 2021. Gambardello analyzed that a low individual investor participation rate is precisely a key characteristic of the early stages of a cycle.

Virtual assets show similarities to the early stages of the 1990s boom in terms of technical momentum indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI). With increased productivity and liquidity supply aligning, there is a high probability of long-term upward growth, pushing to new all-time highs over the next few years. The flow of institutional capital expenditure towards AI infrastructure forms the foundation for increased network value. Market participants are formulating response strategies by focusing on the broader technology adoption cycle rather than short-term volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*