Bitcoin's next big rally could rely on artificial intelligence stocks becoming excessively overvalued within the eyes of investors, in keeping with macroeconomist Lyn Alden.
“It may very well be that sooner or later AI stocks are only peaking and rising a lot that they will't realistically go much higher,” Alden told Natalie Brunell on the Coin Stories podcast, released Thursday on YouTube.
When the worth of an asset rises to a level where further gains are harder to justify, capital often shifts to other opportunities with greater upside potential.
Lyn Alden spoke with Natalie Brunell on the Coin Stories podcast. Source: Natalie Brunell/YouTube
With Bitcoin (BTC) down nearly 46% from its October all-time high of $126,100, Alden thinks the corporate may gain advantage from this rotation.
Nvidia may very well be the “most vital stock” within the US, says its executive
Some financial analysts ponder whether the most important AI stocks will maintain their momentum in 2026. Jason Ware, chief investment officer at Albion Financial Group, recently told Fox Business that he expects GPU chip maker Nvidia (NVDA), the most important company by market cap on the Nasdaq stock market, to have “one other great quarter” but questioned whether it can be “ok.”
“We all know they’re probably the most concentrated and obvious winner in AI constructing. Can that growth proceed in a way that supports the stock's rise?”
According to Google Finance, Nvidia's (NVDA) stock price is up 35.48% over the past 12 months, and Ware said it’s “probably crucial company and stock in America available in the market.”
Investors' increasing interest in AI means Bitcoin is now “competing for capital” in a way it has never seen before, Bitcoin developer Mark Carallo said on Thursday.
Bitcoin only needs a “marginal amount” of recent demand
However, Alden said that Bitcoin wouldn’t need a major wave of capital to rise. “It only takes a small amount of recent demand to are available in,” Alden said, adding that long-term holders essentially “set the ground” while short-term traders leave.
“The coins go from quick money hands to heavily held hands; they really won't wish to part with it unless it goes up five times or more, that form of buyer,” she said.
According to CoinMarketCap, Bitcoin is trading at $67,849 on the time of publication, down 24.49% over the past 30 days.
Alden said she doesn’t expect a rapid, short-term increase in the worth of Bitcoin.
“Bitcoin rarely hits V-shaped bottoms outside of COVID stimulus-type events,” she said, adding that it “normally hits a low level after which trades sideways for quite some time.”
“I believe we're in additional of a difficult situation,” Alden said, adding that the worth could go down by $10,000 or $20,000 and it's still in that “difficult period.”
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