Gold below $4.000 and Bitcoin near $80.000: is this the start of an AI crash?

France is in stormy waters, the gold price has fallen below $4.000 per ounce (silver is also faring poorly again) and Bitcoin is desperately trying to defend the psychologically important $80.000 level. All these data points come after a week in which AI stocks took a beating. Is the AI bubble bursting, and is it dragging the whole market down with it?

AI model

That question is occupying investors worldwide. For years, shares linked to artificial intelligence appeared immune to bad news. Every new chip, every new AI model and every spectacular growth forecast pushed prices higher. That confidence now appears to be crumbling. Several AI favourites have lost tens of per cent of their market value in a short period, while investors are beginning to ask whether their sky-high valuations can still be justified.

The nervousness is not confined to the technology sector. Traditional safe havens are also showing unexpected weakness. Gold has slipped below the symbolic threshold of $4.000 per ounce and silver is still struggling to attract buyers. That is notable at a time when geopolitical tensions remain high and economic uncertainty is increasing. Normally, precious metals benefit from precisely such conditions.

Sentiment

Bitcoin, meanwhile, is in a difficult position. The world’s largest cryptocurrency is struggling to hold above $80.000. A convincing break lower could further damage sentiment, especially now that investors are assessing risky assets ever more critically. The crypto market, which benefited for years from abundant liquidity and a strong appetite for risk, is feeling the pressure mount.

Even so, it is too early to speak of a broad market crash. Corrections are a normal part of any bull market and demand for AI solutions continues to grow strongly. Companies are still investing billions in data centres, chips and software that make artificial intelligence possible.

The big question is whether the current pullback is a healthy cooling-off after a period of excessive enthusiasm, or the start of something larger. If the AI hype does indeed begin to run out of steam, it is not only technology shares that could be hit. A far broader repricing of risk could then loom, with consequences for equity, crypto and commodity markets worldwide.