AI Money Rotates Back to Crypto Amid $840K Price Prediction
Binance founder Changpeng Zhao (CZ) says speculative capital is rotating back to crypto from artificial intelligence (AI) trades, but this doesn't mean the market is out of the woods yet.
Crypto prices have been volatile in recent times, with Bitcoin (BTC) trading near $77,278, down 0.04% over the past 24 hours. According to Glassnode, heavy overhead supply still sits above, keeping BTC range-bound.
This rotating capital is described by CZ as 'tourist money' that moves fast and chases narratives. He emphasizes that this type of capital rarely stays for a full allocation cycle.
River, a research firm, has published a model suggesting Bitcoin could reach $840,000 within five years if just a fraction of investors allocate a small portion of their capital to it. This would imply significant net inflows over three to five years, ranging from $1.3 trillion to $5.3 trillion.