AI-Fueled Market Rally Masks Rising Macro Risks as Bitcoin Gains Hedge Narrative

Global equities sit near record highs despite mounting geopolitical, inflation, and supply-chain risks as AI-driven capex and passive investing propel markets. The article argues AI (and a roughly $1 trillion data‑center buildout) and index-flow dynamics are central tailwinds, concentrating upside in semiconductor-heavy markets like South Korea (Samsung & SK hynix account for ~30% of KOSPI), but also creating asymmetric downside if AI spending slows. Other underpriced risks include disruptions through the Strait of Hormuz (energy and commodity shortages), private‑credit stress, and feedback loops from passive outflows and FX moves. Bitcoin is highlighted as an increasingly discussed hedge (“digital gold”) for portfolios facing systemic uncertainty, but the piece counsels diversification across time and asset classes rather than reliance on a single narrative.