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Bitcoin’s next major move may depend on investor sentiment toward artificial intelligence stocks, according to macroeconomist Lyn Alden. She said overheated AI valuations could redirect capital into Bitcoin. The cryptocurrency trades near $67,849, down sharply from its October peak.
Alden shared her view during a recent appearance on Natalie Brunell’s Coin Stories podcast, published Thursday. She explained that investors often rotate funds when leading assets become too expensive. In that setting, Bitcoin could attract marginal demand.
Bitcoin trades almost 46% below its October all-time high of $126,100. Over the past 30 days, the asset has fallen 24.49%, based on CoinMarketCap data. Despite the decline, Alden said BTC would not need a large capital wave to move higher.
Alden said AI stocks could reach levels where further gains appear difficult to justify. At that point, capital may search for alternative opportunities. She suggested Bitcoin could benefit from that shift.
Meanwhile, some market participants have begun questioning AI momentum heading into 2026. Albion Financial Group chief investment officer Jason Ware told Fox Business that NVIDIA could deliver another strong quarter. Yet he asked whether strong results would still support higher stock prices.
Ware described NVIDIA as the most concentrated winner in the AI buildout. He also called it the most important company and stock in America’s market. NVIDIA shares have gained 35.48% over the past 12 months, according to Google Finance.
At the same time, Bitcoin developer Mark Carallo said rising AI enthusiasm means Bitcoin now competes for capital in a new way. He noted that investor focus has shifted toward AI-related equities.
Alden argued that Bitcoin requires only marginal new demand to rise. She said long-term holders create a price floor as short-term traders rotate out. According to her, coins often move from fast traders to investors unwilling to sell unless prices rise several times higher.
She added that such holders may wait for gains of five times or more before parting with their positions. This structure, she said, limits available supply during downturns.
Still, Alden does not expect a sharp rebound. She said Bitcoin rarely forms V-shaped bottoms outside extraordinary events like COVID-era stimulus measures. Instead, it tends to hit a low level and then trade sideways for extended periods.
“I think we’re in more of a grind,” Alden said. She added that Bitcoin price could fall another $10,000 or even $20,000 before stabilizing. For now, she described the market as remaining in that grinding phase.
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For over a century, equities have delivered the strongest annualized returns among major asset classes. The S&P 500 has outperformed commodities, real estate, and bonds over long periods.
Yet during the past decade, cryptocurrencies have surpassed the S&P 500 in total returns. According to The Motley Fool, Bitcoin has led that surge. Over the last 15 years, Bitcoin rose from around $1 to roughly $68,500 as of mid-February.
Despite that performance, Bitcoin continues to divide investors. Discussions often blur the distinction between value and utility in the cryptocurrency arena. Value and utility represent separate concepts within investment analysis.
As AI stocks dominate capital flows and Bitcoin trades well below its record high, one question remains: will an AI valuation peak redirect meaningful capital into Bitcoin?
Lyn Alden says the Bitcoin price could benefit if AI stocks peak and investors rotate capital into assets with more upside. She also says Bitcoin may grind for a while instead of bouncing fast. Traders may watch NVIDIA stock and broader equity sentiment for signs of a shift.
