Liquid Capital Founder Says AI Leverage Could Trigger U.S. Stock Correction

Liquid Capital founder 易理华 said Justin Sun sees AI-sector leverage as a possible trigger for a sharp U.S. stock correction if a leading company or Musk runs into trouble.

易理华 described a nearly hour-long conversation with Sun the previous night about Sun's bearish views on the Nasdaq and Bitcoin (BTC).

As 易理华 recounted the discussion, Sun argued that years of confidence in AI had pushed leverage and subprime financing at AI firms represented by Nvidia far beyond revenue growth. Sun's scenario, as relayed by 易理华, was that trouble involving Nvidia or Musk could prompt deleveraging and bubble deflation across the AI supply chain.

易理华 said that shift could lead to a sustained, sharp correction in U.S. stocks and, in a more severe case, a financial crisis.

Separately, 易理华 said Democrats taking office and an event involving 黄仁勋 had led him to repeatedly consider how those developments could affect U.S. equities over the next one to two years. He said his thinking had moved beyond Bitcoin trading data.