AI Momentum vs. Bitcoin: BlackRock and JPMorgan Split Over Capital Flows

BlackRock's head of digital assets Robbie Mitchnick explained how artificial intelligence (AI) trade is affecting crypto and highlighted what could help reignite momentum for Bitcoin. The AI trade has absorbed investor attention, causing Bitcoin to lag behind. However, Mitchnick expects this to shift as US deficits return to focus near the midterms.

According to JPMorgan's Jamie Dimon, AI spending on track for roughly $700 billion this year, unemployment at 4.3%, and steady growth make it a strong contender for investor capital. The S&P 500 cleared 7,600 for the first time in early June, led by AI names.

Research firm NYDIG flagged the strain on Bitcoin demand. Spot Bitcoin ETFs have shed $6.4 billion since May 7, with only two positive flow days since. Stablecoin balances have also dropped $8 billion since May 22, showing where institutional money flows.