Crypto Market Weakness Due to AI-Pulled Marginal Buyer, Says T. Rowe Price Head
T. Rowe Price's crypto head Blue Macellari argues that AI has pulled the marginal buyer away from crypto, leaving a gap in adoption that institutions have not yet filled.
The market has been digesting the slowdown of unprecedented positive news since last summer, which saw a new administration, a new SEC, fresh regulatory guidance, and wave after wave of institutional adoption announcements.
'I don't feel like I've heard something where I was like, 'Oh okay, that was it, that makes sense to me,'
Macellari said, referring to the October crash.
She attributes two reasons for the market's weakness: the unsustainable pace of positive news and AI's impact on the marginal buyer.
'Every major institutional player is now building something in crypto.'
Despite this, Macellari remains bullish on crypto's bigger picture, citing accelerated demand from large corporate boards, expanded total addressable market due to AI agents transacting on-chain, and growth in stablecoins, real-world assets, and 24/7 equity trading.