Bridgewater Associates founder Ray Dalio recently spoke frankly in an interview: the market bubble has already formed. The question is not whether there is a bubble, but when it will burst.

Dalio pointed out that some sectors are already flashing red lights. "Monetary policy will not tighten in the short term, and in fact, it’s still easing. But you can see cracks expanding—private equity, venture capital, debt refinancing, they’re everywhere," he said. "Based on various indicators, we are indeed in a bubble."

However, he also emphasized that this is an AI-driven bubble. A bubble does not mean an imminent crash.

"Historically, every major technological revolution has spawned a bubble, with hot money pouring in crazily. But it’s never all smooth sailing. Either you invest too much and end up wasting money, or invest too little and miss opportunities, followed by intense volatility..." Dalio compared this bubble to the 2000 Internet bubble, "While it’s not as exaggerated as 1929, it’s similar in nature. The key question is, when will the bubble burst?"

His advice is very practical: don’t rush to sell just because it’s a bubble. Keep an eye on warning signs, especially signs of tightening monetary supply. "You need to understand that wealth and money are two different things. It’s too easy to create wealth during a bubble; any project can raise hundreds of millions of dollars, with valuations skyrocketing..." (The original text cuts off here)

For crypto market participants, these words are worth pondering. How long can the market frenzy fueled by the AI boom last? Perhaps the answer lies in signals indicating a shift in monetary policy.