Bitwise Research Director Says AI Rally is Drawing Attention and Capital Away from Crypto
Bitwise Research Director RasterlyRock pointed out that "AI is sucking the air out of the crypto room," as the AI rally significantly diverts market attention and capital allocation.
He observed that investor and institutional resources are rapidly shifting towards AI hardware, models, and applications, leading to relative pressure on crypto project financing, trading volume, and community activity.
Mechanically, both institutions and retail investors are driven by high growth expectations for AI, causing funds to flow from crypto assets to AI infrastructure like NVIDIA; event-driven attention is shifting from Bitcoin ETFs and meme coins to AI agents and chip stocks, benefiting AI sector companies and related funds, while crypto projects and trading platforms lacking new narratives are under pressure.
Source: Public Information
ABAB AI Insight
Bitwise has consistently released research reports on the crypto market, analyzing institutional adoption paths and the impact of Bitcoin ETFs. Analysts like RasterlyRock have repeatedly pointed out the diversion of attention from crypto due to emerging tech hotspots, continuing the observation of hot topic rotation within the industry cycle.
In terms of capital flow, venture capital and retail funds are concentrating on AI infrastructure and applications, motivated by high visibility returns (like NVIDIA's stock price) to drive allocation, with the aim of pursuing short-term explosive growth, while crypto needs to wait for catalysts like AI agents to regain mainstream attention.
Similar to the diversion of blockchain attention after the 2017-2018 ICO boom and the shift towards the metaverse after the 2021 NFT/DeFi peak, the current crypto market is in an adjustment phase dominated by AI-led capital and attention cycles.
Essentially, this is about capital concentration; the AI rally is gathering global venture capital towards a few high-growth tech subfields through higher narrative density and visible returns, mechanically amplifying the hot topic rotation effect and reshaping crypto's long-term positioning as "digital gold" or an "AI payment layer."
ABAB News · Law of Cognition
While new hotspots seem to suck the air out, it is actually capital rotation that tests the long-term resilience of crypto. Selling AI explosive growth captures attention, while selling Bitcoin reserves serves as a hedge; the top sellers are those with pricing power reshaped by actual adoption. The market is not lacking in funds, but rather in continuously attracting mainstream narratives; the winners will use AI to catalyze the restructuring of crypto and technology.