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Investors ‘obsessed’ with AI as crypto stocks lose charm, Bitcoin mining exec laments – DL News
- AI is stealing the spotlight from crypto, says a Bitcoin mining executive.
- Many Bitcoin mining stocks fell during the year despite Bitcoin’s strong performance.
Nvidia stock is all anyone talks about in the market, and that’s not good for crypto.
This is what Youwei Yang, vice president of mining at BIT Mining, says DL News that investors ignored crypto stocks in favor of a new market narrative.
“The market and hot money are very focused and obsessed with the path of AI,” said Yang, who is also chief economist at the Bitcoin mining company.
Nvidia
It’s been hard to miss Nvidia, which has soared about 154% since the start of the year and earlier this month surpassed Apple’s $3 trillion market cap.
Nvidia is a market leader in creating powerful computers used to train and operate artificial intelligence, such as OpenAI’s ChatGPT.
Meanwhile, mining stocks struggled. Marathon Digital Holdingsthe largest Bitcoin mining company with a market capitalization of $5.6 billion, is down 13% this year.
BIT Mining shares are doing even worse, falling 48%.
That compares with the broader S&P 500 index and the tech-heavy Nasdaq, which have taken advantage of optimism over Federal Reserve policy to hit new records.
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“The stock market and especially the technology market now considers and considers all bullish news and FOMO” – he said, referring to investors’ fear of missing out. “Encryption has lost its charm.”
Lost moment
The crypto market lost steam after a strong start to the year fueled by the approval and launch of 11 spots Bitcoin exchange-traded funds in January.
Bitcoin has been trading sideways since March while Nvidia and technology stocks have soared.
O instant approval of 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 seen a slow sell-off.
Until crypto can “climb some convincing narrative or constructive breakthrough,” Yang said, “crypto will just be trading sideways, waiting for big market shocks.”
Tim Craig is a DeFi correspondent at DL News. Have a tip? Email him at tim@dlnews.com.