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Could AI Stocks Become Next Bitcoin Bullish Catalyst?

Emre Yumlu — Sat, 21 Feb 2026 13:00:14 +0000

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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Bitcoin One-Year Low: Where Is the Money Going?

Yeliz Akmaca — Fri, 06 Feb 2026 14:00:39 +0000

Bitcoin has slipped to its lowest level in nearly a year, while U.S. equities are moving in the opposite direction. Strong earnings, renewed appetite for AI stocks, and improving market breadth have pushed the S&P 500 back toward record territory. At the same time, selling pressure across crypto markets has intensified.

This divergence isn’t random. Capital is rotating away from liquidity-driven trades and toward assets offering direct earnings visibility. Bitcoin falling below $65,000 fits squarely into that shift.

Stocks Recover, Crypto Pulls Back

U.S. equities remain resilient despite a brief pullback after the S&P 500 climbed to around 6,976. Earlier in the week, the index closed just below its previous high before attempting another short-lived push upward.

Meanwhile, risk appetite in equities stands in sharp contrast to weakness in crypto.

Momentum on the Bitcoin side has clearly faded. As broader capital flows favor traditional risk assets, selling pressure in digital markets has become increasingly visible. The gap between sentiment toward stocks and crypto continues to widen.

Why Is Bitcoin Falling Behind?

The latest rally in the S&P 500 has been driven largely by AI-linked stocks. After a short pause sparked by valuation concerns, investors returned to big tech and semiconductors.

Alphabet hit new highs. Amazon found support ahead of earnings. Chipmakers rallied on strengthening demand expectations.

But the more interesting story is happening beneath the surface.

Market breadth has improved noticeably. Small-cap stocks have outperformed, with the Russell 2000 up roughly 3% year-to-date. Simply put, investors aren’t just betting on mega-caps anymore — confidence is spreading across the broader economy.

In short: earnings, not valuations, are now carrying the rally.

Earnings Take Center Stage

Corporate results are the primary engine behind the current advance. Analysts expect S&P 500 companies to post close to 11% earnings growth for the December quarter — well above projections from January.

FactSet data shows more than 80% of reporting firms have beaten expectations so far. Even more striking: recent research suggests roughly 84% of total S&P 500 returns in this cycle are coming directly from earnings growth. That means prices are rising because of real profits, not multiple expansion.

This shift also softens “AI bubble” fears. Cash flow, not hype, is increasingly backing higher valuations.

Macro Backdrop Remains Supportive

The broader macro picture continues to favor equities.

U.S. GDP growth is hovering around 3.3%. Inflation remains relatively contained. Productivity indicators are improving. Even temporary government disruptions and delayed data releases failed to materially shake market confidence.

The Dow Jones Industrial Average is up more than 1% year-to-date. The Nasdaq Composite is down about 2.6%, but selective buying in tech persists.

Attention now turns to upcoming economic data and the Federal Reserve’s next policy signals, as investors look for confirmation that financial conditions will stay supportive.

What Bitcoin’s Weakness Is Signaling

While stocks climb, crypto markets are moving the other way. Bitcoin dipped below $65,000, marking its weakest level in about a year. Pressure across digital assets has grown as fading momentum, declining speculative appetite, and capital rotation toward earnings-producing equities converge.

This opposing performance highlights a widening short-term split between traditional risk assets and crypto.

Both markets can benefit from liquidity expansion. But in the current environment, investors are prioritizing balance sheets over narratives.

Fresh S&P 500 highs are being powered by earnings, not valuation inflation. AI investment, relative strength in small caps, and resilient macro data continue to support the upside — even as record levels demand more selective caution.

Bitcoin’s slide to one-year lows makes one thing clear: risk appetite is weakening on the crypto side, while equities still hold the wheel.

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Bitcoin and Nvidia Surge As Dollar Weakens and Recession Signals Mount

Yigit Taha OZTURK — Thu, 26 Jun 2025 12:00:58 +0000

As global financial markets grapple with uncertainty, two powerful assets have emerged as the week’s clear winners: Bitcoin and Nvidia. With the U.S. dollar sliding and economic data pointing to a possible recession, investors are doubling down on tech and crypto.

A striking detail? The strong correlation between Bitcoin and Nvidia has come into sharper focus — fueling the rally and reshaping investment strategies.

Dollar Index Drops, Bitcoin Rebounds

The U.S. Dollar Index (DXY) fell to 97.27, its lowest level since February 2022, driven by rising expectations of a Federal Reserve rate cut in July and weaker housing and consumer sentiment data.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

As financial conditions ease, risk-on sentiment dominates. Bitcoin has responded with a near 10% recovery from its weekend lows. “DXY is now at its lowest since March 2022. This is very bullish for global money supply and Bitcoin,” noted Bitwise Europe research head Andre Dragosch.

DXY pair 4-hour chart.

Nvidia Hits Record High As Nasdaq Signals Bull Rally

Meanwhile, Nvidia — the AI giant and tech bellwether — soared by 4.33% to reach an all-time high of $154.30. The 90-day correlation between BTC and Nvidia now stands at 0.80, reflecting a robust positive link.

The surge followed a golden cross pattern in Nasdaq futures, a strong bullish technical signal suggesting further upward momentum.

Bond Yields and Consumer Data Indicate Recession Risk

Yields on 2-year U.S. Treasury notes dropped to 3.76%, while 10-year yields slipped to 4.27%. This steepening of the yield curve often precedes economic contractions.

Consumer confidence also dropped sharply, with the expectations index falling to 69 — well below the recession-warning threshold of 80. Combined with sliding oil prices and dovish signals from Fed officials, traders are increasingly pricing in a July rate cut.

Bitcoin stands to benefit from this shift in monetary policy outlook.

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