Is AI eating crypto’s liquidity? Inside the $300B Oracle hit and Bitcoin miner pivots
Massive AI funding is setting a new benchmark, pulling liquidity and infrastructure focus away from the crypto sector.Summary
The surge in AI funding, exemplified by Oracle's stock drop after its OpenAI deal and Cursor's high valuation, suggests that AI promises are outrunning crypto's appeal, forcing investors to question crypto's necessity. Global AI startup funding reached nearly $100 billion in 2024, dwarfing crypto's previous hot trades and setting a higher bar for token valuations.
Crypto projects are attempting to integrate AI, such as the failed ASI token merger, but this often appears as existing crypto liquidity shadowing private AI markets. More significantly, Bitcoin miners like Bitfarms and Iris Energy are pivoting their energy infrastructure to serve AI data centers, as hyperscalers offer higher returns per megawatt than mining, literally redirecting energy away from securing the Bitcoin network.
Furthermore, AI agents pose new security risks to crypto exchanges, potentially merging the regulatory risk surface of both sectors. Ultimately, AI has become the reference trade for future computing, causing liquidity to shift as it prices Bitcoin infrastructure, AI tokens, and exchange security within its narrative.
(Source：CryptoSlate)