Virtual Asset Market, Golden Age Like the 1990s is Coming... Expert: "AI to Drive Super Bull Run"

▲ Bitcoin (BTC), Ethereum (ETH), Virtual Assets, Artificial Intelligence (AI)/AI Generated Image

It is projected that the explosive productivity improvement in the Artificial Intelligence (AI) industry will flow beyond the stock market into the virtual asset ecosystem, initiating a long-term boom for virtual assets.

Dan Gambardello, host of the cryptocurrency-focused YouTube channel Crypto Capital Venture, stated in a video released on April 30 (local time) that the U.S. economy and market are at the beginning of a productivity boom similar to that of the 1990s. Gambardello cited the recent performance of the Magnificent 7 companies as key evidence. Microsoft's Azure revenue surged by 40%, Google Cloud grew by 63%, and Amazon Web Services recorded a 28% growth rate, indicating that investments in AI infrastructure over the past two years are leading to tangible revenue and efficiency increases.

The current trajectory of the S&P 500 index closely resembles the productivity boom period between 1995 and 2000. While some in the market are concerned about the current level being a short-term peak, the Relative Strength Index (RSI) analysis points in a completely different direction. Gambardello explained, "During the super cycle of the 1990s, the Relative Strength Index soared to an overbought level of 87, but currently it remains around 70, indicating ample room for further upside." This suggests that in a long-term bull market accompanied by productivity growth, an uptrend can persist for several years even if indicators show peak signals.

The monetary policy inclination of Kevin Warsh, who is being considered as a candidate for the next U.S. Federal Reserve Chair, is also cited as a key variable that could change the market landscape. Gambardello predicted that if productivity improvements are sustained, a new type of bull market could emerge, combining interest rate cuts with balance sheet reduction, without relying on large-scale quantitative easing as in the past. Bitcoin (BTC) and altcoins were identified as the asset classes most likely to benefit from the changing macroeconomic environment.

Currently, the altcoin market is consolidating energy at price levels seen in 2021 and remains excessively suppressed, detached from positive macroeconomic trends. Gambardello assessed the current market as a historically undervalued phase and an excellent opportunity, while also emphasizing thorough risk management. He pointed out that investors should prepare for a worst-case scenario where the altcoin market capitalization could drop to around $242 billion if it fails to hold support and the trend breaks down.

The virtual asset market is digesting strong tech stock performance and changes in macroeconomic indicators, seeking new directions. At the intersection of technical analysis and fundamentals, investors are re-evaluating and refining their investment strategies to align with the upcoming volatile market conditions.

*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.*