AI Bubble Fears Grow as Oracle Crash Hits Crypto Market

[etfs]

Oracle’s sudden stock drop has also dragged down the crypto market, illustrating how AI and crypto investments are intertwined.

Analysts point to circular financing, where LLM developers invest in chip makers, who then invest back into AI projects. A failure at a major player like Oracle could trigger broader instability.

The downturn reinforces concerns that the AI market may be in a speculative bubble, vulnerable to cascading losses.

[Nahid10]

AI hype leaking into crypto is risky. Oracle’s drop could easily trigger another correction across AI-linked tokens and metaverse coins.

[EmTeam]

Markets are overreacting but the fear is valid. When giants like Oracle stumble, sentiment across AI and tech assets changes fast.