China’s AI stock bubble keeps deflating. On October 27, the STAR50 index fell 4.81%, extending a roughly 40% slide from July that erased about $480 billion.

Bitcoin, however, holds near $80,400, and two scenarios could decide whether the selloff reaches crypto.

Scenario One: Why Global Contagion Could Hit Bitcoin

The greater near-term danger is a mirror effect on Wall Street, not a direct Chinese crypto dump. If upcoming US tech earnings show that massive AI infrastructure spending continues to outpace realized revenue, concerns about overvaluation could spread.

The index closed at 1,252.28, while the CSI…