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

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

An outlook has emerged that the explosive productivity improvement in the artificial intelligence (AI) industry will flow beyond the stock market into the virtual asset ecosystem, ushering in a long-term boom for virtual assets.

Dan Gambardello, host of the cryptocurrency 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 artificial intelligence infrastructure over the past two years are leading to tangible revenue and efficiency gains.

The current trend of the S&P 500 index closely resembles the trajectory of the productivity boom that occurred between 1995 and 2000. While some parts of the market are concerned about the current level being a short-term peak, analysis of the Relative Strength Index 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 it currently remains around 70, indicating sufficient room for further upside." He diagnosed that in a long-term bull market accompanied by productivity growth, an uptrend can persist for several years even if indicator-based peak signals appear.

The monetary policy stance of Kevin Warsh, who is being considered as a candidate for the next Chairman of the U.S. Federal Reserve, 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 similar to 2021, remaining excessively suppressed and detached from positive macroeconomic trends. Gambardello evaluated the current market as a period of record undervaluation and an excellent opportunity, but also called for thorough risk management. He warned 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 its support level and the trend breaks down.

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

*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.*