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AI stocks keep hitting new highs, with billions pouring into data centers and AI infrastructure. Bitcoin, on the other hand, has struggled to find its footing, staying well below its early-2026 highs, even as institutions pile in and regulatory developments stay positive.
As such, there’s been talk amongst investors and users on social media if AI is killing Bitcoin.
In the past few days, several prominent Bitcoin supporters pointed to what they describe as a historic capital rotation.
For instance, Michael Saylor (co-founder of Strategy) says capital markets have injected about $400 billion into AI infrastructure in just the last six months. Meanwhile, US spot Bitcoin ETFs have seen around $4 billion in net outflows since mid‑May.
Saylor argues that Bitcoin’s recent weakness is not a fundamental problem with the cryptocurrency itself. Instead, investors are moving capital into what looks like the hottest growth story in global markets right now, and that’s AI.
Saylor isn’t alone in this, since other traders and investors see it the same way. Long-time Bitcoin investor Pierre Rochard noted that investors are unusually confident that AI will dominate the next ten years in earnings, energy use, chip demand, data center build‑out, and productivity.
In Rochard’s view, Bitcoin’s drop is less about it getting weaker and more about money flowing toward what feels like a sure thing.
AI Is Absorbing Everything
It’s hard to overstate how big the AI boom is. In the last year, the world’s biggest tech firms have announced hundreds of billions in AI spending. Microsoft, Amazon, Google, Meta, OpenAI, Anthropic, Oracle, Nvidia, and many more are locked in what increasingly seems like an arms race for infrastructure.
Some of the most recent examples include:
- NVIDIA shipped its new Vera AI chips to OpenAI, Anthropic, SpaceX, and others.
- SBI Holdings is rolling out Anthropic’s Claude AI across its banking, securities, insurance, and crypto units.
- China launched a 24‑megawatt underwater AI data center running mostly on offshore wind.
- Alphabet raised about $80 billion for AI investments.
According to Rochard, the AI boom has added roughly $19 trillion in market capitalization to the world’s 50 largest public companies over the past year. To put that in perspective, it’s about thirteen times bigger than the entire market cap of Bitcoin.
Bitcoin’s Identity Crisis
Bitcoin is in a tricky spot right now. In the past, it benefited from narratives such as digital gold, inflation hedge, protection from money printing, sovereign risk hedge, and long‑term value storage. But lately, that hasn’t helped much, given its price has dropped more than 20% over the last 30 days.
On the other hand, AI companies are promising exponential productivity gains, huge revenue potential, and even breakthroughs that could remake whole industries.
In contrast, Bitcoin’s pitch is simpler, offering scarcity and monetary protection.
This matters because capital tends to move into whatever is trending the most at the time, and AI is currently the clear winner here.
Why Some Investors Think This Is a Mistake
However, not everyone believes AI trade is sustainable.
Crypto analyst and trader Ran Neuner said that AI has become the crowded trade, while Bitcoin has become the neglected one.
History shows that markets often punish people who ditch neglected assets to chase whatever is currently popular.
Several Bitcoin advocates made similar observations, such as Grant Cardone, founder and CEO of Cardone Capital and Cardone Training Technologies. He said weaker Bitcoin holders are selling to chase AI stocks, but long‑term Bitcoin‑focused companies are still stacking.
Another Bitcoin advocate on X named Breadman went a step further, saying that selling Bitcoin to buy AI stocks might end up being one of the worst investment calls of the decade.
Quinten Francois, a well-known public figure in the European crypto scene, shared a like-minded view, questioning the wisdom of anyone selling an asset that’s well off its highs to buy stocks that are already near record levels.
Related: Why Bitcoin Is Falling While AI Stocks Keep Breaking Records
Data Tells a Different Story
Interestingly, Bitcoin ownership data doesn’t fully support the bearish narrative.
Per Brian HoonJong Paik (Bitcoin entrepreneur and educator), long‑term holders now own about 16.3 million $BTC, which is near a record high. More importantly, long-term holders reportedly accumulated roughly 200,000 $BTC just this month, during a period of weakness.
In the past, that kind of pattern has usually shown up in accumulation phases, not at major market peaks.
That being said, some believe the relationship between AI and Bitcoin is misunderstood.
For example, Joe Burnett (VP of Bitcoin Strategy at Strive) pointed to an idea from investor Eric Jackson that Bitcoin could one day become a core collateral asset for AI agents that act on their own.
In that scenario, AI systems might need a globally accepted, digital‑first form of collateral to handle payments, settlements, verification, and economic coordination. The idea is that rather than competing with AI, Bitcoin could eventually become part of the backbone that supports an AI‑powered economy.
So, Is AI Killing Bitcoin?
Though it’s difficult to say for certain whether AI is killing Bitcoin, the evidence suggests this isn’t the case.
What appears to be happening is a temporary fight for capital. Right now, markets think AI offers the best potential return on investment, so money is flowing accordingly.
That doesn’t automatically mean Bitcoin’s long‑term investment case has gotten any weaker, especially considering that many of Bitcoin’s best indicators (like long‑term holder stacking and institutional ownership) still look solid.
Related: Ray Dalio Warns AI Boom May Face Pressure Beyond Technology Risks
