As sentiment in the crypto market takes a major hit, Carlos Guzman, a research analyst at crypto trading firm GSR, told Decrypt that crypto appears to be falling in sympathy with other risk assets as investors are reducing exposure to risk assets tied to artificial intelligence.
For example, the S&P 500 software and services index was down 3% on Thursday. Guzman said fears of disruption stemming from advancements from AI were bolstered recently by the release of new legal tools from Anthropic for its Cowork product.
“The fundamentals haven't changed, but the sentiment has really taken a hit,” he said of Bitcoin. “Sentiment in crypto right now is really weak, just some of the weakest I've seen.”
Editor's note: This story is breaking and will be updated with additional detail.
