AI Stock Overvaluation Could Propel Bitcoin Higher: Analyst

Bitcoin's next rally may need capital rotation from overvalued AI stocks like Nvidia, creating a slow grind higher.

  • Macro strategist Lyn Alden suggests Bitcoin‘s next major rally may depend on capital rotating out of overvalued AI stocks.
  • Bitcoin is seen as “competing for capital” with the surging AI investment theme, according to market observers.
  • Alden believes a sustained price recovery for Bitcoin will likely be a slow “grind,” not a rapid V-shaped bounce.
  • Long-term Bitcoin holders are putting a price “floor” in place as they refuse to sell for less than substantial gains.
  • Analysts question if NVIDIA‘s growth can continue to justify its stock price, which is up over 35% in a year.

Macro strategist Lyn Alden posited on the Coin Stories podcast published Thursday that Bitcoin’s next major advance could be triggered by a capital rotation from excessively valued Artificial Intelligence stocks. She argued that when an asset’s price becomes hard to justify, investors seek new opportunities with greater upside potential.

- Advertisement -

Consequently, Bitcoin, currently down 46% from its $126,100 peak, could benefit from such a shift. However, Bitcoin is now directly “competing for capital” with the AI investment wave, a new dynamic noted by developer Mark Carallo. This competition centers on giants like Nvidia, which Albion Financial Group’s Jason Ware called the “most important stock in America.”

Ware recently told Fox Business he expects another strong quarter from the chipmaker but wonders if it will suffice to push the stock higher. Nvidia’s share price has risen 35.48% over the past year, according to Google Finance data.

Meanwhile, Alden emphasized that Bitcoin only needs a marginal inflow of new demand to move higher, as long-term holders create a solid price floor. She explained that coins rotate from short-term traders to strong hands who “are really not going to want to part with it unless it goes up like 5X or more.”

Bitcoin was trading at $67,849 at the time of publication, down 24.49% over the past month, according to CoinMarketCap. Alden does not anticipate a quick price surge, noting “Bitcoin rarely makes V-shape bottoms.”

- Advertisement -

She instead forecasts a prolonged period of consolidation, stating the market is currently in more of a “grind.” This phase could see the price move $10,000 to $20,000 lower before establishing a durable base for its next cycle.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Binance Wallets Moved $1.7B to Terrorist Groups: Report

Over $1.7 billion in crypto moved from Binance-linked wallets to U.S.-sanctioned groups like Iran's...

HSBC, StanChart to Get Hong Kong Stablecoin Licenses

HSBC and a Standard Chartered venture are poised to be the first authorized stablecoin...

Chrome zero-days exploited, Google patches actively

Google urgently released patches for two high-severity Chrome vulnerabilities already being actively exploited in...

US Debt Hits $578B Quarter, BRICS Sell-Off Sparks Alarm

The U.S. Department of the Treasury projects borrowing $578 billion in Q1 2026, a...

Crypto trader loses $50M in swap, gets only 324 tokens

A crypto trader executing a $50 million swap for AAVE tokens on Cow Swap...

Must Read

What Are Sniper Bots Used in Defi Trading?

You've heard about DeFi, but what about sniper bots? These high-speed trading tools are shaking up the crypto scene.But don't fret, you're not...