Bitcoin Resilience Tested as Tech Stocks Plummet on AI Safety Concerns
Asian tech stocks took a significant hit on September 14 due to growing concerns over AI safety, but Bitcoin remained relatively unaffected. SoftBank Group shares plummeted 13% and OpenAI delayed its initial public offering (IPO), while energy stocks tied to AI data center buildouts fell by as much as 10%. The cause of the anxiety was a chorus of industry leaders calling for a slowdown in AI development.
Anthropic CEO Dario Amodei and OpenAI's Sam Altman urged caution, citing concerns about timelines, regulatory risk, and the sustainability of the sector's breakneck growth. SoftBank's heavy investments in AI through its Vision Fund portfolio also took a hit. BTC held steady at around $76,800, despite the decline.
The relationship between Bitcoin and tech stocks has been a subject of interest throughout 2023. In June, year-to-date outflows from Bitcoin ETFs reached $3.1 billion, causing BTC to drop to cycle lows near $58,000 to $60,000. However, the price has recovered by around 30% since then.
The data suggests that institutional investors may have rotated out of Bitcoin to increase their AI bets, but if those bets continue to sour, it could provide a significant boost for BTC in the fourth quarter.