Crypto turns ‘contrarian bet’ as AI stocks draw investor attention: Bitwise
Crypto is becoming a “contrarian bet” as institutional money flows into AI and other high-growth tech stocks instead of digital assets. Bitwise’s Matt Hougan says crypto has lost its momentum-trade appeal and is now being judged more on fundamentals, patience, and long-term adoption. He argues that this shift is painful but potentially healthy, since investors are rotating toward projects with real utility rather than hype. Hougan also says the current bear market is different from past cycles: instead of Bitcoin being the default safe haven, capital is moving into smaller crypto assets with stronger fundamentals. That rotation suggests the market may be closer to the end of the downturn than the start. Still, prices remain weak, with the total crypto market falling sharply and remaining far below its peak.
