Bitcoin and crypto stocks both saw declines on Tuesday.
Jamie Dimon, the CEO of Arm Corporation, warned that AI could lead to job loss in the US.
Bitcoin falls amid a risk-off mood
Bitcoin fell on Tuesday as the broader weakness of equities spilled into cryptocurrency markets.
The token, which had traded near $71,000 in an earlier session, fell to about $69,400 as of the writing.
Other major cryptocurrencies such as Ethereum, Solana and XRP also fell between 2% to 3% in the last 24 hours.
Bitcoin’s long-term dynamic has attracted attention despite its short-term weakness.
Bitcoin’s correlation with gold is now at -0.9. This marks a new low for the past three years, and indicates that both assets are going in different directions.
In the past, this divergence coincided with significant Bitcoin bottoms.
The analysts also pointed out that increasing whale accumulation, and the technical support over short-term moving averages as indicators of a possible end to the bearish phase.
Circle Stocks plunge on Fears of Regulation
Investors reacted negatively to possible changes in US regulation of stablecoins by dumping shares of Circle. This was the steepest drop on record.
Stocks linked to crypto-currencies have suffered losses of up to 25%.
Coinbase, MARA Holdings and Bullish also fell, as did Galaxy Digital, Robinhood and Galaxy Digital.
Concerns about the Clarity Act (which could limit rewards for stablecoin holders) prompted this sell-off.
This legislation could prevent exchanges offering incentives for tokens like USDC. In turn, this would weaken a major driver of adoption.
The competition is intensifying.
Tether has announced that it engaged Big Four Accounting Firms for an audit. This fueled speculation about the possibility of a possible expansion to the US market.
Arm shifts production of AI chips in-house
Arm Holdings has announced its plans to create and market its first silicon product in-house, a major departure from the traditional licensing model.
AGI CPU is the new processor that will power artificial intelligence workloads within data centers. This could lead to a revenue stream of several billion dollars.
Rene Haas, the chief executive of the company, described this move as pivotal.
ARM’s new strategy puts it in direct competition with their own customers. Previously, ARM licensed its chip designs to companies such as Qualcomm or Nvidia.
This chip has up to 136 CPU cores and is intended for AI advanced applications including AI autonomous agents.
TSMC will handle the manufacturing using 3-nanometer technology.
The initiative is supported by major technology companies, such as Meta and OpenAI. This shows a strong support from the industry.
Jamie Dimon warns about AI job loss
Jamie Dimon has warned that AI could result in significant job loss for the US. He has called on government and business to work together to minimize the effect.
Dimon stated during a discussion panel at the Hill and Valley Forum, Washington that “[if] suddenly it causes unemployment, then this is a serious problem for society.”
The business community must take a lead in the retraining of workers. Governments could also introduce incentives that would help with workforce transitions.
Dimon warned that AI-driven change could be more disruptive than past technological changes.
Washington is introducing proposals to manage the job displacement caused by AI.
This article Evening Digest: Bitcoin drops, Jamie Dimon warns about AI job risk appeared first on The ICD
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