Alliance DAO Co-Founder: AI Trading Has Formed a Major Bubble—Not Advisable to Blindly “Catch a Falling Knife”

On November 7, QwQiao, co-founder of Alliance DAO, posted: “Is the current valuation of AI stocks high, low, or fair? No one can answer that confidently. To judge accurately, you’d need to precisely foresee the pace of future AI breakthroughs, global supply chain evolution, credit market trends, geopolitical shifts, and macroeconomic developments—an ability akin to owning a crystal ball. In reality, no such person exists.

That said, technical charts, investor sentiment, and positioning data collectively point to one near-certain fact: AI trading is forming a massive bubble—and history repeatedly shows that post-bubble crashes overshoot.

So I’ll only feel truly confident deploying large capital into AI stocks when charts show prolonged bottoming patterns, investor psychology has fully broken down, and AI itself is being dismissed on CNBC as ‘a worthless, bandwagon-fueled fad.’”