NYDIG: Looser Monetary Policies Driven by AI Could Create Favorable Conditions for Bitcoin
According to Greg Cipolaro from NYDIG, Bitcoin stands to benefit if artificial intelligence spurs economic expansion while liquidity increases and real interest rates remain moderate.
According to Greg Cipolaro, research lead at digital asset services firm NYDIG, Bitcoin stands to gain momentum should artificial intelligence trigger disruptions in employment markets or create instability that pushes central banks toward more accommodative monetary stances.
In a Friday research note, Cipolaro outlined how AI might be classified as a "general-purpose technology" comparable to electricity, noting that its macroeconomic impact on job markets, economic expansion, and investor risk appetite will have significant implications for Bitcoin (BTC).
"If AI-driven growth occurs alongside expanding liquidity and contained real rates, that backdrop can be supportive for Bitcoin," Cipolaro said. "But if stronger growth lifts real yields, tightens policy, and reduces the need for monetary accommodation, Bitcoin may face headwinds."
"Conversely, if AI generates labor disruption or volatility that prompts fiscal expansion and easier monetary policy, the resulting liquidity impulse would likely favor Bitcoin," he added.
The technology's influence on the economy is already becoming evident, with numerous corporations implementing significant workforce reductions driven by AI capabilities, even as investment dollars in the billions flow into artificial intelligence model development firms.
On Friday, Jack Dorsey announced that Block, his payments firm, would be reducing its workforce by approximately 40% as a result of AI implementation, while forecasting that numerous other organizations would implement similar measures in the near future.
AI transition may be volatile and uneven
A report published in August by Goldman Sachs' research division suggested that broad-scale AI implementation could result in the displacement of as much as 7% of American workers, though the report also indicated that new employment categories would likely emerge.
Cipolaro recognized that the transformation will "pose challenges," necessitating the restructuring of workflows, acquisition of new competencies, and further capital deployment. However, he anticipates AI will replicate the same "historical pattern" demonstrated by earlier technological breakthroughs.
"The implication is not that disruption will be painless, but that the equilibrium response to new technology has historically been integration, not obsolescence. Society's response to AI will likely follow the same pattern," he said.
"Firms that integrate it effectively will widen margins and productivity gaps. Workers who adapt will enhance their relevance. Those who resist may fall behind," Cipolaro added.
The cryptocurrency sector is also witnessing growing AI integration. In October, crypto exchange Coinbase announced a new tool, Payments MCP, that grants AI agents access to the same on-chain financial tools used by people, with AI and blockchain executives noting that it can be safe but also introduces new risks.