AI Tech Early, Capex and Valuations Late-Cycle: Implications for Crypto Markets

HTX Research has published a report that examines the state of artificial intelligence (AI) technology and its impact on equity markets. According to the report, AI technology is still in an early stage, while capital expenditure (capex) and valuations have reached late-cycle territory.

The report, titled "The Industrialization of Intelligence and the Bubble Cycle," suggests that US AI equities have become one of the strongest external signals for risk appetite across digital assets. The research arm of crypto exchange HTX notes that capital expenditure has outpaced technology adoption, leading to a late-cycle spending phase.

Valuations are also under pressure as multiples reflect years of unbroken execution, making the market less sensitive to long-term potential and more sensitive to quarterly disappointment. This shift in risk profile has significant implications for crypto markets, which often trade alongside US equities.