Crypto Surges Past AI Stocks as Institutional Money Floods In
Bitcoin and Ethereum have been gaining significant momentum in recent weeks, outperforming AI stocks and major indices such as the S&P 500 and Nasdaq. According to recent data, Bitcoin was up 31.60% while Ethereum surged 53.50%. In contrast, the S&P 500 gained just 2.26%, and the Nasdaq barely moved at 0.22%
The influx of institutional money into cryptocurrency is one possible explanation for this shift in momentum. US spot Bitcoin ETFs pulled in about $1.6 billion between August 17-21, with Thursday alone bringing in around $606 million. Ethereum's spot Ether ETFs recorded approximately $221 million on August 20, marking their fourth straight day of inflows.
This trend is notable because it shows the rally isn’t just retail traders jumping on momentum, but that there’s also institutional money coming in through regulated products. However, it doesn't necessarily mean investors have suddenly gone cold on AI, but rather suggests crypto has stronger drivers at the moment.
Crypto's biggest advantage right now may be its momentum, with Bitcoin approaching the $80,000 area after rising roughly 30% from its recent low near $60,000. The total market capitalization of cryptocurrencies has also increased sharply, indicating that the rise isn't limited to one token.