Emre Yumlu 
According to macroeconomist Lyn Alden, next meaningful Bitcoin upside move may depend less on crypto-specific news and more on what happens in the artificial intelligence equity space. In her view, an eventual peak in heavily valued AI stocks could redirect capital flows toward alternative assets — including Bitcoin.
Alden argues that when a particular sector becomes excessively priced relative to realistic growth expectations, investors begin searching for asymmetric opportunities elsewhere. If leading AI names reach levels where further upside becomes difficult to justify fundamentally, capital rotation could follow. In that environment, Bitcoin may stand out as a beneficiary.
Are AI Valuations Reaching a Saturation Point?
Companies at the center of the AI buildout — most notably Nvidia — have delivered strong market performance. Nvidia shares have climbed 35.48% over the past 12 months, reflecting intense investor enthusiasm around AI infrastructure and GPU demand.
However, some analysts question whether this pace of appreciation can continue indefinitely. While expectations remain high for continued solid earnings performance, the key issue is whether growth can persist at a rate sufficient to support elevated valuations. Albion Financial Group CIO Jason Ware has described Nvidia as perhaps the most important company and stock in the U.S. market today, yet he also raised the question of whether ongoing results will be “good enough” to justify further price expansion.
At the same time, heightened investor focus on AI means Bitcoin is now competing for capital in ways it previously did not. Institutional and retail funds alike are allocating heavily toward AI-driven equities, potentially limiting crypto inflows — at least for now.
Why Bitcoin May Not Need Massive Inflows
Bitcoin currently trades at $67,849, approximately 46% below its October all-time high of $126,100. Over the past 30 days, the asset has declined 24.49%. Despite this drawdown, Alden suggests that a large-scale capital wave may not be necessary for the next advance.
She emphasizes that Bitcoin often moves on marginal demand shifts. With long-term holders maintaining positions and effectively creating a supply floor, even a modest increase in new buying pressure could push prices higher.
However, Alden does not anticipate a sharp V-shaped recovery. Historically, Bitcoin rarely forms rapid bottoms outside extraordinary macro stimulus events. Instead, it typically enters a prolonged consolidation phase after reaching lows. She characterizes the current environment as more of a gradual grinding period, noting that additional downside of $10,000 to $20,000 remains possible within a broader stabilization process.
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