Over the weekend, Bitcoin surged to $80,000, echoing the synchronized asset melt-up seen three years ago at the pandemic’s end. Back then, Elon Musk forecasted 50% growth for Tesla “indefinitely,” but this year, Tesla sales have seen a downturn. Now, Musk promises to fix the U.S. government, even as the tech sector swells to levels reminiscent of the 2000 bubble burst.
The rise of artificial intelligence has spurred this market surge, with projections suggesting the AI market could reach nearly $1 trillion by 2027. Companies like Nvidia and Meta have aggressively invested in AI, banking on massive growth. However, soaring investor enthusiasm might be laying the groundwork for a significant correction. As AI valuations rise, concerns about market stability intensify, with some experts predicting the AI boom could result in an unprecedented meltdown.
The tech-heavy S&P 500 recently hit new highs, fueled by confidence in earnings and low-risk assessments, but the market’s fragility remains under the surface. The coming months may reveal whether this melt-up is sustainable or the precursor to a historic downturn.
"Double down". pic.twitter.com/3aruB2qBCC
— Mac10 (@SuburbanDrone) November 10, 2024
Bitcoin hit $80k over the weekend.
The last time we saw a synchronized asset melt-up of this magnitude was exactly three years ago at the end of the pandemic.
Back then Elon Musk promised Tesla would grow 50% per year "indefinitely". So far this year, Tesla sales have been… pic.twitter.com/ru67Ip7A0F
— Mac10 (@SuburbanDrone) November 10, 2024
Sources:
- Meta’s AI Spending: Investopedia
- AI’s Trillion-Dollar Opportunity: Bain & Company
- Market Melt-Up: Morningstar
- Investor Sentiment: Morningstar
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