PiCK

"Bitcoin Underperforms This Cycle... The Reason Is AI"

Uk Jin

Summary

Macro strategist Lyn Alden said she believes Bitcoin’s weaker-than-expected performance in the current upcycle reflects a concentration of funds into AI-related stocks.
Alden said that money that previously would have flowed into the digital asset (cryptocurrency) market has instead moved to AI infrastructure and semiconductor companies, noting that Bitcoin is competing with other assets for capital.
Alden said a sharp rally in AI-related companies such as Nvidia has absorbed investor attention, adding that if AI-related demand slows, interest could shift toward digital assets with greater upside potential.

Bitcoin (BTC) has been flagged as underperforming expectations in the current upcycle, with the backdrop attributed to a capital shift into artificial intelligence (AI)-related stocks.

According to CoinDesk on the 21st (Korea time), macro strategist Lyn Alden said on a podcast, "Bitcoin isn’t underperforming in isolation; it is competing with other assets for capital," adding, "Funds that in the past would have flowed into the digital asset (cryptocurrency) market have instead moved into AI infrastructure and semiconductor companies."

Alden added, "Bitcoin has continued to lag since the sharp sell-off last October, because the surge in AI-related companies such as Nvidia has absorbed the attention of both retail and institutional investors," and noted that "if AI-related demand cools, attention could shift to digital assets with greater upside potential."

BTC