Bitcoin Price Faces Long-Term Risk as Rate-Cut Hopes Clash with Weak AI Productivity

The recent optimism in the crypto market, fueled by comments from Fed Chair Kevin Warsh suggesting openness to rate cuts, is being challenged by on-chain data showing weak AI sector productivity.

This data contradicts the assumption that AI-driven gains will ease inflation and supports the narrative for rate cuts. If actual macro conditions diverge from expectations, it may weaken the narrative supporting rate cuts, increasing the risk of a sell-off in Bitcoin.