Bitcoin is losing to AI. Is Crypto dead?

Bitcoin has dropped from its record high of $126,000 last fall to just above $60,000, erasing more than $1.2 trillion in market cap in eight months and wiping out all gains made across President Trump’s second term.

The reason? The investors are simply chasing more exciting opportunities. Capital is rotating away from crypto as investors favour AI-related stocks and upcoming tech IPOs, with bitcoin ETFs seeing their second-largest three-week outflow streak on record.

Meanwhile, the Nasdaq fell 4.18% a couple weeks ago, its worst day since April 2025, as AI stocks pulled back sharply after Broadcom issued weaker-than-expected guidance. So, even the AI trade is getting shaky.

Is this the end of bitcoin’s dominance, or just a temporary rotation before Crypto roars back?

Bitcoin losing ground to AI hype feels like watching two bubbles fight for the same air. :D