Investors Flee AI for Crypto Amid Government Intervention

Investors are shifting their focus from AI to crypto, according to Bill Miller IV, chairman and chief investment officer at Miller Value Partners. Speaking on CNBC's Closing Bell on August 24, he noted that the AI trade has become crowded and smart money is rotating into Bitcoin.

Miller attributed the surge in Bitcoin prices between $78,500 and $80,000 during the week ending August 25 to government interventions rather than crypto-native catalysts. He pointed to Japan and the US coordinating support for the yen in late July, which rippled through global currency markets and forced repositioning across asset classes.

Miller also mentioned that the US Treasury's decision to double its buybacks of long-dated bonds during the week of August 18-22 alleviated yield pressures on the long end of the curve. This triggered notable short liquidations across cryptocurrency markets, leading to a three-day rally in Bitcoin.

Miller characterized Bitcoin as a strategic hedge against the fiscal reality of the projected US budget deficit for 2026: $1.8 trillion. He argued that when governments run deficits of this magnitude, the resulting monetary accommodation erodes the purchasing power of traditional savings.