Bitcoin stalls near $60,000. Bloomberg Intelligence's McGlone says 'the purge is just getting started.' Coinbase CEO Armstrong pushes back.
Alpha Score of 37 reflects weak overall profile with poor momentum, weak value, poor quality, strong sentiment.
Investors and hedge funds are unloading bitcoin and other crypto tokens to pour money into artificial intelligence, a shift that has stalled bitcoin near $60,000 while sending AI stocks to new highs, the Wall Street Journal reported Monday.
Switzerland-based investor Daniel Koss told the WSJ he felt "like a cave man who found fire" after moving from crypto to AI. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said "what's happening in crypto is the purge is just getting started."
Ryan Ho, founder of social-trading app Legend, said he began pulling away from crypto after last year's crash. The market no longer functioned like a healthy risk asset, he said. AI's growth potential was more attractive to everyday investors, grounded in real-world uses like ChatGPT and AI-assisted coding. Trading platforms including Hyperliquid have started offering AI derivatives, which Ho said drove many crypto traders to start trading AI equities.
Coinbase CEO Brian Armstrong pushed back on the narrative. In a post on X, he said stablecoins have brought the dollar onchain, giving anyone a low-inflation currency they can send around the clock. DeFi gives access to credit, he said, and tokenized stocks let billions of unbrokered people get exposure to the U.S. stock market. Bitcoin provides a store of wealth that cannot be inflated away.
"You can't forget about how far we've come," Armstrong said.
His comments followed Coinbase's latest earnings report, where executives said the company has moved beyond being just a cryptocurrency exchange, pushing into subscriptions, stablecoins, payments infrastructure and AI-ready blockchain rails.
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