Bitcoin This year’s lackluster performance has unnerved investors.
Despite the stock’s all-time highs, the world’s largest cryptocurrency has struggled to regain momentum, while US tech stocks have risen on enthusiasm around AI, as it is currently trading just below the $62,000 mark, down more than 50% from its peak price in October.
Two new perspectives from asset managers Hashdex and Charles Schwab argue that the disconnection is temporary, albeit for different reasons.
Samir Kerbage, chief investment officer at Hashdex, said the recent weakness in cryptocurrencies says more about where investors are allocating capital than about the health of the digital asset ecosystem.
“Capital follows attention and narratives,” Kerbage wrote in a mid-year market outlook. “Cryptocurrencies have benefited from this in the past, but right now the focus is elsewhere. AI infrastructures, IPO projects and macro positioning around rate expectations are absorbing the flows.”
That rotation, he argued, has overshadowed several structural developments that continue to strengthen the long-term investment case for cryptocurrencies. Institutional infrastructure is expanding across banks, brokers, and payment providers, while regulatory clarity in the United States has improved and could be further strengthened if Congress passes the CLARITY Act this summer.
Meanwhile, underlying cryptocurrency usage continues to grow even as prices remain subdued.
