Bitcoin’s remarkable rally appears to have hit a wall as investors increasingly shift their attention—and money—toward the booming artificial intelligence sector.
According to CNN, the world’s largest cryptocurrency has plunged from a record high of $126,000 last fall to just above $60,000, wiping out more than $1.2 trillion in market value. The slide has erased all of Bitcoin’s gains recorded during President Donald Trump’s second term.
Analysts say growing enthusiasm around AI-related investments, including major tech listings and companies linked to artificial intelligence, is pulling speculative capital away from crypto markets. At the same time, uncertainty over inflation and interest rates has added pressure on digital assets.
The broader crypto industry has also felt the pain, with several major crypto-linked stocks posting sharp declines this year.
Still, some industry watchers believe regulatory clarity could spark a turnaround. Proposed U.S. legislation aimed at establishing clearer rules for cryptocurrencies and stablecoins is being closely monitored by investors.
For now, however, AI appears to be the market’s favorite story, while Bitcoin struggles to regain its footing, CNN reported.
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