AI Siphons Capital Away from Bitcoin, Experts Say

BlackRock Managing Director Robert Mitchnick says that AI investment is drawing capital away from Bitcoin. He attributes Bitcoin's 20% drop in value over the past month to this trend, rather than any specific crypto-related issues.

Mitchnick notes that gold and other traditional inflation hedges are also facing pressure as investors chase exposure to AI across both public and private markets. He describes the current situation as 'the AI momentum sucking a lot of the oxygen out of the room'.

The BlackRock executive expects US fiscal deterioration to be the catalyst for reversing this trend, particularly with the 2026 midterms approaching.