Bitcoin Loses Steam as AI Enthusiasm Reaches Fever Pitch

Bitcoin's value has been volatile in recent months, and according to analysts at Bernstein, this is largely due to investors shifting their focus towards artificial intelligence. In 2026, combined investments in Bitcoin ETFs and crypto treasury companies have dropped from $60 billion to a mere $12 billion.

The decline of retail investor interest in Bitcoin is being attributed to the perceived short-term explosiveness of AI opportunities. However, Bernstein notes that this trend could actually be beneficial for Bitcoin's long-term prospects, as it indicates a decrease in momentum-driven flows and an increase in more stable, institutional investment.

Corporate demand, led by MicroStrategy (MSTR), is now the main source of new flows to Bitcoin, representing a significant shift towards more diversified capital. Bernstein believes that this trend strengthens the thesis of Bitcoin as a long-term store of value, rather than just a speculative asset.