Is the AI Rally Cooling Down for a Bitcoin Comeback?

Macro investor Jordi Visser believes the easy money in artificial intelligence stocks has reached its limit. While he notes that AI remains a relevant industry, he suggests the potential for massive, rapid returns has dropped significantly. Visser argues that rising competition from open source models makes it difficult for any single company to maintain a massive lead, pushing expected returns down to more modest levels.

Major tech companies are currently spending heavily on infrastructure, often outpacing their cash flow. Microsoft, Meta, and Alphabet have all seen their spare cash cushions shrink as they pour billions into data centers. With hedge funds already heavily invested and trading activity slowing down, some analysts suggest that the stock market may struggle to find the fuel needed for another major rally in the short term.

Looking ahead, Visser expects AI agents to eventually handle financial transactions on their own, a shift that could favor blockchain networks. While he highlights the potential for Ethereum as a platform that generates fees, he also acknowledges that the broader market remains sensitive to interest rates and potential regulatory changes. Traders are now keeping a close watch on upcoming legislation and Federal Reserve decisions to see where the next major shift in capital will occur.