Crypto Sees Return of Speculative Capital from AI Trades

Binance founder Changpeng Zhao (CZ) says that speculative capital is rotating back to cryptocurrency from artificial intelligence trades. This shift has been driven by CZ's assertion that AI pulled speculative flows through 2026, but the money layer beneath those trades never went away.

CZ framed this movement as 'some hot money' flowing back from AI to crypto, emphasizing that it meets a market described as boxed in by Glassnode. The current Bitcoin price is near $77,278, down 0.04% over the past 24 hours with heavy overhead supply still sitting above.

A report published by River argues for a 10% Bitcoin allocation and puts the potential price of Bitcoin at $840,000 within five years. This forecast is based on a model that implies $1.3 trillion to $5.3 trillion of net inflows over three to five years, or roughly $250,000 to $840,000 per coin.

The report highlights that investment advisors as a group hold 0.008% of assets in Bitcoin, while 29 out of the top 30 registered investment advisors already own some. This suggests that portfolios remain massively underweight Bitcoin despite Wall Street adoption.