An analysis said bitcoin may not take a big hit even if the artificial intelligence (AI) bubble bursts. Blockchain media outlet U.Today reported on Thursday that CryptoQuant CEO Ki Young Ju (주기영) said the impact of a sharp correction in the AI market on bitcoin could be limited.

Ju said bitcoin has largely failed to join the recent AI-related stock surge. That means bitcoin is relatively less likely to be shaken even if the AI market undergoes a steep correction. He wrote on X that the collapse of an AI bubble does not appear likely to significantly harm BTC.

He also mentioned the possibility of a shift in investor funds. Investors seeking to ride the AI boom may have already sold bitcoin holdings to raise money to buy AI stocks. As concerns grow over AI overvaluation, he also said those funds could return to bitcoin.

However, he drew a line at claims that a steep AI market drop would immediately be positive for bitcoin. He added that an AI collapse is not necessarily a bullish or bearish factor for BTC, and the two trends do not appear related.

Concerns have been growing in markets that the AI investment boom has overheated. The AI frenzy is one of the signature investment booms in the modern technology industry and evokes memories of the dot-com bubble of the late 1990s. Technology companies are investing hundreds of billions of dollars in data centres, high-performance chips and more sophisticated AI models.

The problem is uncertainty over whether such massive investment will translate into sufficient returns. Sceptics say AI companies have failed to consistently prove results from their business models. They also cite concerns over a complex structure in which large technology companies invest huge sums in AI developers, and the AI developers then use that money to buy those companies' computing infrastructure and services.

Still, it said the bursting of an AI bubble would not mean the end of the technology itself. When the dot-com bubble burst, speculative money largely disappeared, but the internet continued afterwards as a force that changed the global economy.