Winklevoss Sees End of AI Trade Cycle, Predicts Rotation Back into Bitcoin and Zcash

Cameron Winklevoss, co-founder of Gemini, believes that the 'AI Trade' cycle has come to an end. This shift is driven by concerns over semiconductor valuations and China's growing artificial intelligence capabilities.

The AI trade refers to investments in technology stocks, particularly those related to semiconductors and artificial intelligence. Winklevoss argues that a significant amount of capital is looking for a safe haven and is rotating back into decentralized assets like Bitcoin and Zcash.

This rotation is reflected in the decline of South Korea's Kospi index, which dropped 10.84%. Major chip companies such as Samsung Electronics and SK Hynix have also recorded significant losses due to new competition from China's memory sector.

Winklevoss has previously supported Zcash, highlighting its privacy features and long-term role in digital finance. While the market remains divided over AI's future, some analysts expect a correction while others see it as a natural maturation process.