Bitcoin’s next significant rally may depend on artificial intelligence stocks becoming overly inflated from investors’ perspective, according to macroeconomist Lyn Alden.
Speaking to Natalie Brunell on the Coin Stories podcast published on YouTube Thursday, Alden said AI stocks could eventually reach valuations so extreme that further upside becomes difficult to justify.
When an asset climbs to levels where additional gains appear limited, investors often rotate capital into alternative opportunities offering greater growth potential.
With Bitcoin (BTC) trading around $67,835 — roughly 46% below its October all-time high of $126,100 — Alden believes it could benefit if investors begin shifting capital away from overheated AI equities.
At the same time, some market watchers are debating whether the biggest AI names can sustain their pace into 2026. Jason Ware, chief investment officer at Albion Financial Group, told Fox Business that while he expects GPU giant Nvidia (NVDA) — currently the largest company on the Nasdaq by market capitalization — to deliver “another great quarter,” the bigger question is whether those results will be strong enough to justify its lofty valuation.
“We all know they are the most concentrated, obvious winner in the AI build out. Can that growth continue in a way that supports the stock moving higher?”
Nvidia (NVDA) shares have climbed 35.48% over the past year, according to Google Finance. Ware described the chipmaker as “probably the most important company and most important stock in America in the market.”
At the same time, surging investor enthusiasm for artificial intelligence means Bitcoin is now “competing for capital” in ways it never has before, Bitcoin developer Mark Carallo said Thursday.
Still, Alden argued that Bitcoin doesn’t require a massive influx of funds to rally. “It only takes a marginal amount of new demand to come in,” she said, noting that long-term holders effectively establish a price floor as short-term traders exit.
Coins tend to shift from short-term speculators to committed holders who are unlikely to sell unless prices rise fivefold or more, she added.
Bitcoin was trading at $67,849 at publication time, down 24.49% over the previous 30 days, according to CoinMarketCap. Alden cautioned against expecting a swift rebound.
“Bitcoin rarely makes V-shaped bottoms outside COVID stimulus-type events,” she said, explaining that it typically finds a low, then trades sideways for an extended period.
“We’re in more of a grind,” Alden said, suggesting the price could still fall another $10,000 to $20,000 as it remains in that consolidation phase.
