After a senior strategist at Barclays warned that the recent rebound in the U.S. stock market might not be sustainable, the cryptocurrency market could face another round of selling pressure.

As a chief strategist at Barclays warned that the recent rebound in the U.S. stock market might not be sustainable, there are more signs of trouble in the cryptocurrency market.

Barclay's Head of Global Equity Tactical Strategy, Alexander Altmann, is now somewhat skeptical about the strength of the stock market rebound. Previously, the market experienced a sharp sell-off, which also dragged down cryptocurrencies.

The factors he listed include a relatively weak market breadth, mediocre performance of growth stocks, a modest rebound in neocloud stocks, a continued slump in cryptocurrencies, and a flat quality factor.

Altmann's concerns arise as the market grows increasingly worried about the feverish investment in AI. The AI investment boom has always been one of the key forces driving the performance of the U.S. stock market, but the market is beginning to doubt whether this trend can be sustained.

Barclay, this strategist, is also one of the few Wall Street figures who question whether the mid-term elections in the United States will bring lasting benefits to the stock market.

Barclays also noted that investment strategies that are more sensitive to volatility may exacerbate market declines.

Bloomberg reported, citing a Barclays model, that within 24 to 48 hours after the sharp market fluctuations on Thursday, volatility funds could face the risk of selling off as much as $135 billion in U.S. stock futures.

In the Bloomberg podcast Odd Lots broadcast on October 29th, Altmann also stated that investors are in a “denial stage” regarding the industry risks of AI.

He pointed out that the financing pressure faced by neocloud, the company responsible for providing hosting computing resources for AI, is on the rise, indicating that early signs of pressure have appeared in this industry.