Headline: Bitwise Identifies AI Bubble and US Regulations as Key Bearish Threats to Bitcoins Future Translation: Bitwise Identifies AI Bubble and US Regulations as Key Bearish Threats to Bitcoins Future

The greatest threat to the first cryptocurrency in the ongoing market cycle comes from the potential bubble in the AI sector and the regulation of digital assets in the United States. This was stated by top executives at Bitwise, as reported by DL News.

André Dragosh, head of research at the European division, emphasized during a meeting with investors that many valuations of AI companies are largely inflated. According to him, stock prices are detached from fundamental metrics.

«Some might be justified, but if judged purely on a quantitative basis, they are too high,» concluded the expert.

A bubble in the AI segment could trigger a macroeconomic shock, leading to a flight from risky assets like cryptocurrencies. The potential impact on Bitcoin could be amplified by its historical correlation with technology firms.

Matt Hougan, the chief investment officer at Bitwise, expressed concerns regarding a possible shift in regulatory policy in the U.S.

In July, President Donald Trump signed the GENIUS Act, establishing regulations for stablecoins. The Senate is currently reviewing a market structure bill aimed at defining a broader set of rules for the industry.

Hougan believes that this bill may stall if it is not signed before the 2026 midterm elections. Following a potential loss of majority by the Republicans, even the regulatory «successes achieved might be undone,» he added.

However, Hougan assessed the likelihood of such a scenario at 20%.

His concerns were echoed by industry lawyer Jake Chervinsky, who noted that the disagreements in the Senate are so significant that he does not expect any amendments to be approved before the end of the year.

«Three issues are hindering the bill: stablecoin yield, conflicts of interest, and DeFi,» Chervinsky clarified.

He mentioned that the approaches of Republicans and Democrats regarding the regulation of these areas differ significantly.

He described the market structure legislation as «a crucial period for implementing cryptocurrency policy goals.» Therefore, it is essential to «get everything right.»

«We won’t have a second chance,» admitted the lawyer.

According to Hougan, Bitcoin is currently «in an unpleasant bear market,» but is somewhere near the bottom of a six-month correction, and there are «not many opportunities left for further decline.»

He reaffirmed Bitwise’s previous forecast for the cryptocurrency at $200,000, although this target will not be reached by the end of the year.

The company misjudged the timeline, underestimating the scale of the sell-off following the price drop to $100,000, as well as the investors’ belief in four-year cycles tied to halving events, Hougan explained.

The expert highlighted two new factors that could push prices upwards:

«The end of the year could be very good,» Hougan said.

Notably, analysts at JPMorgan have linked Bitcoin’s prospects to financial resilience.