Bitcoin Valuation Clearance May Precede Stock Market Amid AI Transition

Fu Peng notes AI infrastructure has matured while applications lag. Capital is narrowing focus, suggesting Bitcoin may digest valuation pressure before traditional equities during this cycle.

Woofun AI reports that Bitfire Group Chief Economist Fu Peng describes the AI sector as shifting from midstream to downstream, with infrastructure like Nvidia showing mature stock traits. He states the next 10 to 18 months are transitional, focusing on whether AI generates stable profits rather than just burning cash for infrastructure. Fu Peng observes that market funds are narrowing focus, eliminating speculative assets lacking cash flow. He suggests pure liquidity assets like Bitcoin often digest valuation pressure before traditional stock markets.

Additionally, he warns that DRAM and HBM storage follow commodity cycles, where excessive off-market leverage can trigger sharp declines even with sound fundamentals.