 ▲ Artificial intelligence agent (AI agent), cryptocurrency trading, Bitcoin (BTC)/ChatGPT-generated image |
The rapid advancement of artificial intelligence technology is shaking the very foundations of the software industry, triggering a “software-as-a-service apocalypse” and dragging the cryptocurrency market into a parallel downturn.
On February 17 (local time), cryptocurrency content creator and analyst Lark Davis said in a video uploaded to his YouTube channel that “as AI-driven industrial disruption becomes a reality, the software sector is experiencing its worst downturn in 30 years, and Bitcoin (BTC) is following the same trajectory as other risk assets.” Davis noted that Anthropic’s AI model, Claude, has reached a stage where it can write and improve its own code, describing this technological leap as posing a serious threat to the survival of white-collar jobs.
Market data clearly reflects these fears. The iShares Expanded Tech-Software Sector ETF (IGV) has fallen 20% year-to-date and is trading below its 200-day moving average—the widest gap since the dot-com bubble collapse 26 years ago. The cryptocurrency market has not escaped the shock, with the average purchase price of spot Bitcoin ETF investors estimated at around $94,000, placing most investors in a loss position. Broad panic selling is emerging across asset markets, with the Nasdaq down 5% from its peak and silver plunging 36.4%.
However, some analysts argue that the market reaction may be excessive. JP Morgan assessed that markets are pricing in a worst-case scenario with a low probability of materializing, while Apollo Global Management dismissed concerns of macroeconomic weakness, citing the solid fundamentals of the U.S. economy. Cathie Wood, founder of Ark Invest, predicted that amid the deflationary disruption driven by AI innovation, Bitcoin will prove its strong competitiveness as a store of value and move toward a $1.5 million price target.
Historical precedent suggests that artificial intelligence is more likely to drive an evolution in work processes rather than widespread job elimination. Just as the rise of the internet did not completely eradicate newspapers or travel agencies but forced them to adapt to new business models, AI is expected to be absorbed into corporate workflows, prompting a reallocation of capital. K33 Research, a digital asset analysis firm, characterized the current market situation as a capitulation-stage bottom and projected that Bitcoin’s status as a digital asset will strengthen further over the long term.
Investors should pay close attention to potential listings by major AI companies such as Anthropic and OpenAI. OpenAI is reportedly valued at $1 trillion and Anthropic at $350 billion, but entering at such highly valued early listing stages could prove risky. Davis emphasized that while AI technology is undeniably transforming industries across the board, investors should adjust their asset allocation strategies based on rigorous valuation analysis rather than becoming exit liquidity in a bubble-driven market.
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