BlackRock’s global head of digital assets, Robbie Mitchnick, said the artificial intelligence boom has become so dominant that it is pulling capital away from Bitcoin, gold, and other alternative assets.
However, he believes increasing the U.S. debt burden could soon bring investors back to Bitcoin.
AI Has Become Wall Street’s Favorite Trade
Speaking in a recent interview, Mitchnick said Bitcoin has faced a difficult period since October as investors poured money into AI-focused companies instead of alternative assets.
“It’s been a tough stretch for Bitcoin since last October for all of crypto, and that’s consistent in many ways with just about everything that is not AI-centric.”
“The AI momentum is certainly sucking a lot of the oxygen out of the room.”
He also added that gold, precious metals, and other non-AI investments have also seen reduced investor attention.
Therefore, Bitcoin has been struggling to compete for investor attention. Even spot Bitcoin ETFs, which have seen a continuous outflow for the last 45 days, with an outflow of over $7.8 billion.
AI Has Become Wall Street’s Biggest Obsession
Mitchnick’s comments reflect what investors are currently seeing across financial markets.
The recent SpaceX IPO highlights that trend. The company initially sought around $75 billion in funding at a valuation of nearly $1.75 trillion, but investor demand reportedly exceeded $280 billion, making the offering heavily oversubscribed.
Next in line is Anthropic, which is reportedly targeting a $1 trillion valuation in a potential October 2026 IPO, with OpenAI also expected to attract significant investor interest.
As more capital flows into high-growth AI companies, it could pull money away from other assets, including cryptocurrencies and crypto ETFs.
Blackrock: Bitcoin Will Rally If U.S Debt Burden Grows
Despite AI dominating headlines, Mitchnick believes the market may be overlooking Bitcoin’s strongest long-term catalyst.
He pointed to America’s growing fiscal problems, including rising debt levels, persistent budget deficits, and concerns about future money printing.
“The more fear there is over the borrowing level and the risk of money printing, that is ultimately the most important fundamental driver ahead.”
The U.S. national debt continues to climb while annual deficits remain measured in trillions of dollars.
As of now, Bitcoin was trading near $62,485, down roughly 3.2% over the previous 24 hours.
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