Bitcoin, a market identical to 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 channel on April 26 (local time) that virtual asset investors should calmly compare the current dull sideways market with the situation in 1996. Gambardello explained that the point when retail investors, exhausted by a prolonged market stagnation, left was actually the starting point of a massive surge. He diagnosed that the entire market, including Bitcoin (BTC), is currently at the starting line of new prosperity, not the end of a bubble.

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 of society, but it soon became mainstream, 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 by raising interest rates seven times in 1994, but liquidity gradually improved from 1996, pushing asset prices higher. Currently, in 2026, after a period of intense tightening, liquidity has bottomed out and entered a stabilization phase. The fact that the Purchasing Managers' Index (PMI) has risen above 50, indicating an expansionary phase, is interpreted as a strong signal for a virtual asset bull market.

While retail investors are sidelined, institutional investors are quietly accumulating assets. In 1996, when the stock market was moving sideways and causing boredom, long-term capital was already building positions. Currently, in the virtual asset market, institutions are filling the void left by individuals exhausted by the fluctuations since 2021. Gambardello analyzed that a low retail investor participation rate is 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 the Relative Strength Index (RSI). With productivity improvements and liquidity supply intertwining, there is a high probability of long-term upward growth, pushing past previous highs in the coming years. The flow of institutional capital expenditure towards AI infrastructure forms the foundation for increasing 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.*