Alliance DAO Co-Founder Warns of AI and Crypto Market Risks

Alliance DAO co-founder QwQiao expressed concerns on Twitter regarding the crypto market’s direction, emphasizing an AI-driven market cycle, on November 14, 2025, via social media.

QwQiao’s statements highlight the potential impact of AI stock fluctuations on crypto, noting capital rotations could influence future market dynamics and investor strategies.

AI’s Growing Dominance Over Crypto Markets

QwQiao observed that despite favorable macroeconomic indicators such as Federal Reserve’s quantitative easing and interest rate cuts, the crypto market is at a frustrating crossroads. He emphasized the AI sector’s dominance, comparing NVIDIA’s role in AI to Bitcoin in crypto.

Capital rotation into AI stocks has resulted in declining funds in crypto. QwQiao warns that if the AI bubble bursts, market consequences could be severe, but a continued rise would prove bear predictions wrong.

“Despite macro factors like Fed QE, TGA rebuild, and rate cuts pointing to a rally, intuitively everything has come to an end. Crypto is a self-fulfilling asset class, and the four-year cycle prophecy feels inevitable. The market is at a frustrating crossroads.” – QwQiao, Co-Founder, Alliance DAO

Market reactions have been mixed, with investors showing concern over QwQiao’s binary analysis between AI and crypto assets. Communities on platforms like Twitter have engaged in discussions about whether AI’s growth can support sustainable market recovery.

Bitcoin and Regulatory Challenges Amid AI Boom

Did you know? QwQiao’s allusion to the binary scenario mirrors historical cycles where technological advancements significantly influenced market focus shifts, similar to the dot-com bubble.

According to CoinMarketCap, Bitcoin (BTC) is trading at $99,197.64, with a market cap of 1,978,843,510,493.95 and trading volume at 104,325,083,920.41 with a 53.64% change. The cryptocurrency has seen a price decline of 2.91% in the past 24 hours and 15.72% over 90 days.

Coincu research team suggests the potential regulatory challenges as AI dominance grows, possibly reshaping financial structures. Historical data points out that major technological booms impact investment patterns, emphasizing the need for strategic positioning.