China’s AI Bubble Bursts With $480 Billion Wiped Out: Is the US Next, and Is Bitcoin Exposed?

China’s AI bubble has burst: the STAR50 index of Chinese AI and chip leaders has lost about 40% in under four months, erasing roughly $480 billion. Reuters’ analysis showed on Monday, October 26, how stretched valuations and Western equipment bans broke the rally. The selling didn’t stop there. On Tuesday, Cambricon, China’s answer to Nvidia, fell another 5.7%. The damage has spread across Asia, and U.S. chip stocks are already 24% below their June high. So is America’s AI trade next, and what would that mean for Bitcoin and AI crypto tokens? The AI bubble in China has officially bursted. The burst wiped out $480 BILLION in value and has affected all of the Chinese market.

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