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Investors are ‘obsessed’ with AI as crypto stocks lose appeal, Bitcoin mining exec complains – DL News
- Artificial intelligence is stealing the spotlight from cryptocurrencies, says a Bitcoin mining exec.
- Many Bitcoin mining stocks have fallen over the year despite Bitcoin’s strong performance.
Nvidia stock is all the talk is about in the market, and that’s not good for cryptocurrencies.
So says Youwei Yang, vice president of mining at BIT Mining, who reported DL News that investors have abandoned crypto stocks in favor of a new market narrative.
“The market and hot money are so focused and obsessed with the path of artificial intelligence,” said Yang, who is also the chief economist of the Bitcoin mining company.
Nvidia
It’s been hard to miss Nvidia, which has grown 154% since the beginning of the year and earlier this month surpassed Apple’s $3 trillion market value.
Nvidia is a market leader in creating powerful computers used to train and manage artificial intelligence, such as OpenAI’s ChatGPT.
Meanwhile, mining stocks struggled. Digital marathon entriesthe largest Bitcoin mining company with a market capitalization of $5.6 billion, is down 13% this year.
BIT Mining shares are doing even worse, plunging 48%.
That compares with the broader S&P 500 and the tech-heavy Nasdaq, which have ridden optimism over Federal Reserve policy to new records.
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“The stock market and especially the technology market now considers and treats every news bullish and FOMO” – he said, referring to investors’ fear of missing out. “Cryptocurrencies have lost their appeal.”
Lost momentum
The cryptocurrency market has lost momentum after a strong start to the year fueled by the approval and launch of 11 commercials Bitcoin exchange-traded funds in January.
Bitcoin has traded sideways since March, while Nvidia and tech stocks have skyrocketed.
THE snap approval Ethereum spot ETFs in May temporarily breathed new life into crypto assets. But with the launch of Ethereum ETFs still weeks away, the market has undergone a slow sell-off.
Until cryptocurrencies can “produce a compelling narrative or constructive progress,” Yang said, “cryptocurrencies will trade sideways in anticipation of major market shocks.”
Tim Craig is a DeFi correspondent at DL News. Do you have advice? Send him an email at tim@dlnews.com.