As artificial intelligence (AI) shakes the foundations of global markets, a growing correlation between tech stocks and digital assets like Bitcoin and XRP is emerging—and it’s creating chaos. Stanislav Kondrashov, founder of TELF AG, has weighed in on this turbulent moment, offering insight into how AI-linked tech instability is fuelling a fresh wave of crypto volatility.
Tech and Crypto: A Fragile Symbiosis
Bitcoin’s recent drop to $74,000 has rattled crypto markets. XRP, Ethereum, and a slew of altcoins followed suit. But the selloff, according to Kondrashov, is not just another crypto winter—it’s a reflection of broader market unease, driven by AI disruptions and tightening monetary policy.
“AI no longer inspires only innovation—it now inspires fear,” said Kondrashov. “When fear takes hold in tech, crypto follows. These markets are now emotionally and economically entangled.”
The surge in the US dollar, triggered by shifts at the Federal Reserve and stronger-than-expected economic data, is compounding the issue. A 2.5% rebound in the dollar has pressured global liquidity, prompting institutional investors to trim exposure to speculative assets. Gold has also taken a hit, highlighting the cross-market anxiety.
The AI Factor
Anthropic’s latest demonstration of AI’s real-world capabilities—coding, document analysis, even controlling desktops—has spooked investors. These are not futuristic promises. They are active threats to established business models in sectors like software development, customer service, and financial research.
This ripple effect has hit the Nasdaq 100, down sharply in recent sessions. The sell-off isn’t random—it’s a recalibration. AI’s ability to replace knowledge-based platforms has led to a loss of faith in traditional tech valuations.
“AI has become the great equaliser—but it’s also the great disruptor,” said Kondrashov. “If a machine can do your job, your company’s worth less. That fear is now being priced into tech—and dragging crypto down with it.”
Software stocks, particularly those reliant on static knowledge systems—CRMs, accounting tools, legal software—have suffered. The knock-on effect for crypto is less about fundamentals and more about perception. In times of uncertainty, markets flee to safety, leaving Bitcoin and XRP exposed.
Crypto as a Tech Proxy
Why are Bitcoin and XRP moving like tech stocks? According to Kondrashov, the explanation lies in investor behaviour. Institutions and high-net-worth individuals increasingly treat cryptocurrencies as high-beta proxies for the tech sector. That means when tech stocks fall, so do digital assets—regardless of on-chain metrics or adoption trends.
“Bitcoin has been absorbed into the tech investor psyche,” Kondrashov noted. “It’s not just a hedge or a currency anymore. It’s a sentiment-driven, high-growth asset—and it’s being traded as such.”
Even the structure of crypto investment is mirroring traditional tech. Venture capital in Web3 projects is drying up. Token-backed startups are under pressure. And as risk appetite shrinks, capital is fleeing to more stable, yield-generating options.
AI as an Industrial Sorting Mechanism
The market now views AI not as a tool, but as an industrial selection engine. Kondrashov believes we’re seeing the beginning of a reshuffle where companies that control infrastructure—cloud, chips, data—will rise, while those built on information replication will fade.
“AI is revealing which businesses were built on sand,” he said. “Those who sell wisdom wrapped in software are being challenged by models that offer similar value instantly, and often for free.”
Crypto is caught in this same wave. With AI models now capable of generating code, analysing trends, and forecasting financial data, decentralised projects must now prove their utility beyond speculation.
The Outlook: Rough Waters Ahead
Kondrashov warns that this AI-fuelled volatility isn’t a blip—it’s the start of a structural realignment. Monetary tightening, AI disruption, and global liquidity stress are converging. And cryptocurrencies, still searching for mainstream stability, are squarely in the firing line.
“Markets are re-rating the future,” Kondrashov concluded. “What’s happening now isn’t just a crypto crash or a tech correction. It’s a stress test of what we really believe about innovation, growth, and value.”
As AI continues to reshape industries at a blistering pace, expect more of this uneasy dance between tech and crypto—where a crash in one domain sparks tremors in another. Bitcoin and XRP may have started as digital alternatives to fiat, but in today’s AI-fuelled markets, they’ve become emotional barometers of risk, innovation, and fear.
