Bitcoin Faces Potential Volatility as Luke Gromen Compares Risks to 2020 Pandemic Event

Bitcoin faces renewed volatility as Luke Gromen of Gromen Partners likened the current conditions to a potential March 2020-style shock, emphasizing the risks posed by macroeconomic uncertainty and market sentiment. This comparison highlights the fragility of the crypto market amid rising expectations for a more stable macroeconomic backdrop. Gromen's comments underscore the ongoing concern among investors and analysts about the potential for abrupt shifts in the market.

The recent earnings performance of C3.ai Inc (AI) showed mixed results. The company reported better-than-expected earnings for Q2 2026 with EPS of -$0.25 versus the forecast of -$0.33. Subscription revenue surged 16.5% quarter-over-quarter. However, Q3 revenue guidance was set at $72-80M, and the company faces challenges from competitive pressure and economic uncertainties according to earnings reports.

In parallel, Galaxy Digital's Q3 2025 results showed a net income of approximately $505 million, but the company remains dependent on crypto market conditions and balance-sheet revaluations for earnings stability. Management explicitly stated that these results reflected both operating performance and gains on digital asset holdings as reported.

Why Did This Happen?

Gromen's warning comes amid a broader assessment of market conditions that could trigger sharp corrections in Bitcoin. The comparison to the 2020 pandemic event highlights the potential for macroeconomic shocks to disrupt the market. Factors such as liquidity conditions, volatility, and asset revaluations play a key role in shaping investor sentiment and market outcomes.

For C3.ai, the recent performance reflects a mix of growth and caution. While the company has demonstrated strong cash reserves and a 54% non-GAAP gross margin, it still reported a non-GAAP operating loss of $42.2M. CEO Stephen Ehikian noted the increasing deployment of enterprise AI, but the company's profitability remains constrained by competitive pressures and operational costs according to company filings.

Galaxy Digital's results similarly highlight the cyclical nature of crypto trading and financing activities. Its earnings are closely tied to market conditions, with interest income and trading volumes fluctuating alongside investor appetite for risk. This exposure makes the company a bellwether for broader market trends as detailed in financial analysis.

How Did Markets React?

The market has shown mixed signals in response to these developments. C3.ai's stock rose 4.42% to $14.37 following its earnings report, despite a 32.87% reduction in shares held by Chairman Thomas Siebel according to market data.

Meanwhile, Galaxy Digital's share price remains sensitive to crypto activity, trading at forward non-GAAP P/E of about 34x compared with sector medians. The stock appears priced for continued crypto momentum and potential contributions from the Helios data center project in 2026 as indicated by market analysis.

The AI apps market, meanwhile, is growing at a 38.7% CAGR, with North America dominating 29.48% of the global market in 2024. However, the sector remains highly concentrated, with key players like C3.ai, IBM, and Microsoft driving growth. The expansion of enterprise AI applications is seen as a key driver of innovation, but profitability remains a challenge for many firms according to industry research.

What Are Analysts Watching Next?

Analysts and investors are closely monitoring the performance of C3.ai and Galaxy Digital in the coming quarters. C3.ai's Q3 revenue guidance and full-year projections will provide insight into its ability to navigate competitive pressures and economic headwinds. Meanwhile, Galaxy Digital's Helios data center is expected to begin contributing to earnings by mid-2026, potentially stabilizing its revenue streams as projected (according to financial analysis).

Market participants are also watching for signs of broader macroeconomic shifts that could impact crypto and AI sectors. With the AI apps market projected to reach $26.36 billion by 2030, the long-term outlook remains positive, but short-term volatility remains a key risk according to industry forecasts.

Overall, the market is in a period of transition, with companies like C3.ai and Galaxy Digital representing the evolving dynamics of enterprise AI and crypto finance. The coming months will be crucial in determining whether these firms can achieve sustainable growth or remain dependent on market conditions for profitability.