- AI is stealing the spotlight from cryptocurrencies, says a Bitcoin mining executive.
- Many Bitcoin mining stocks have fallen over the year despite Bitcoin's strong performance.
Nvidia stock is the only thing everyone in the market is talking about, and that's not good for cryptocurrencies.
So says Youwei Yang, vice president of mining at BIT Mining, who said DL News that investors have overlooked cryptocurrency stocks in favor of a new market narrative.
“The market and hot money are very focused and obsessed with the AI track,” said Yang, who is also the chief economist at mining company Bitcoin.
NVIDIA
It's been hard not to notice Nvidia, which has soared about 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 operate artificial intelligence, such as OpenAI's ChatGPT.
Meanwhile, mining stocks have struggled. Digital marathon entriesThe largest Bitcoin mining company with a market capitalization of $5.6 billion, has fallen 13% this year.
BIT Mining stock is doing even worse, falling 48%.
That compares with the broader S&P 500 and the tech-heavy Nasdaq, which have been riding optimism over Federal Reserve policy to new records.
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"The stock market, and in particular the technology market, now considers and considers every piece of news to be bullish and FOMO," he said, referring to investors' fear of missing out. "Cryptocurrencies have lost their charm."
Lost momentum
The cryptocurrency market has lost momentum after a strong start to the year driven by the approval and launch of the 11 spot. Bitcoin Exchange Traded Funds in January.
He quick approval of Ethereum spot ETFs in May temporarily breathed new life into crypto assets. But with the launch of Ethereum ETFs still a few weeks away, the market has suffered a slow sell-off.
Until cryptocurrencies can “exploit some compelling narrative or constructive breakthrough,” Yang said, “cryptocurrencies will simply operate sideways waiting for big market shocks.”
Tim Craig is a DeFi correspondent at DL News. Do you have advice? Send an email to tim@dlnews.com.
