Could Sam Altman’s profit warning be the forebearer of a crash in tech and crypto?

Bitcoin has had a relatively quiet August, and September is also shaping up to be very strong technically (as long as the price remains above $100,000). However, a profit warning from none other than Sam Altman, CEO of OpenAI (creator of ChatGPT), has been making investors nervous all week. Nvidia and Palantir are seeing their first profit-taking. Will Bitcoin follow suit, and will the nervousness spread to all the tech and crypto markets?

Worldcoin

While investors were likely calming their nerves during their two-week vacation (that first half of the year was quite a challenge) and then considering how to prioritize their portfolios for the period starting in September, something happened last week that ruined both those plans.

Sam Altman, CEO of Open AI and the man behind Worldcoin, admitted that many AI investments by companies are currently worthless and that the risk of a crash is quite high. Tech companies had a difficult week as a result, and analysts are increasingly wondering what lies ahead.

According to recent articles in the Financial Times and The Guardian, a crash is indeed on the horizon after Altman’s warning went unchallenged by other Silicon Valley CEOs.

Interest rate

Thanks to Jerome Powell’s hint that we’ll finally see an interest rate cut in the United States in September, market panic has been contained, and we’ve actually set a new all-time high for the Dow, but rest assured, tensions are rising beneath the surface.

Pay close attention to what Palantir and Nvidia do in the coming days to see where the market will go.

Nvidia reports quarterly results this week. If they disappoint, things could move very quickly. Further profit-taking and Bitcoin trading below $100,000 would be the first signs.