Since the end of 2022, the narrative around artificial intelligence (AI) has rapidly expanded, largely driven by OpenAI and its creation, ChatGPT. This has significantly impacted risk markets, indicating that AI is not just a theoretical concept but something tangible. This rapid growth has also paved the way for cryptocurrencies, continuing to support their expansion.
Is the AI Frenzy Over?
Over the years, numerous headlines have suggested that AI is merely a bubble, set to deflate as the excitement wanes. Despite being a relatively nascent field, AI has been associated with speculation about an imminent bubble burst that could upend tech stocks. However, such narratives persist while AI’s expansion shows no signs of abating.
Contrary to the bubble hypothesis, AI continues to experience explosive growth. The United States already hosts 5,426 data centers, with $40 billion worth of new data center constructions underway. Since 2022, growth has surged by over 400%. This is significant not only for the global economy but also for the cryptocurrency market.
The table above shows a comparison of data centers worldwide and those in the United States as shared by TKL.
Despite the increase in data centers, energy consumption remains well below previous projections, indicating a robust infrastructure to support further growth. Alphabet, Amazon, Meta, Microsoft, and OpenAI have announced an $800 billion investment in new data centers this year. Such substantial investments are set to bolster the economy and positively influence global markets. Thus, the feared bubble-bursting industry is instead embarking on its most significant investments.
Cryptocurrencies
Although cryptocurrencies may seem unrelated, they are often grouped with technology stocks. The AI-driven tech expansion is expected to further elevate cryptocurrencies. The parallel rise in cryptocurrency prices during the NVDIA rallies illustrates this trend effectively.
As November approaches, DaanCrypto suggests that Bitcoin 
$76,115 is entering its best period, based on historical performance. Of the 12 Novembers experienced by Bitcoin, eight resulted in gains.
“November and December have historically marked peaks in 2013, 2017, and 2021 cycles, while also being the bottom for 2018 and 2022 cycles. Generally, the last two months of the year are eventful. Whether upward or downward, volatility and major market shifts remained the primary theme until year-end,” states DaanCrypto.
To protect your portfolio in the short term, diligent news tracking is crucial. CryptoAppsy provides live streams and an up-to-date calendar, making it an invaluable tool. It simplifies staying informed by offering easy access to the details of significant developments.
