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Federal Reserve (FED) · Bitcoin · Wall Street ·

AI’s $800 billion spending boom is becoming Bitcoin’s Fed problem

2 min read

Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.

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The Market Maker’s Exchange Checklist (Liquidity, Latency, and Risk Controls)

For the better part of two years, Wall Street has treated AI as the most bullish trade on the board, a growth engine that turbocharges earnings, underwrites stretched valuations, and promises a productivity windfall somewhere down the road.

Key facts

Summary

01 AI capital spending could reach $800 billion in 2026, with cloud providers and data centers driving the surge. 02 That demand may lift prices for power, chips, labor, and equipment, giving the Fed more reason to keep rates unchanged. 03 Bitcoin's rate-cut bet now hinges on whether AI inflation fades before the Fed's June meeting and loosens liquidity. However, the Fed has access to the same numbers and seems to be more inclined to treat the AI build-out as a fresh source of demand in a market that's still fighting to drag inflation back toward its 2% target.

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