StoneX analyst Weller says there just doesn’t seem to be a compelling reason to buy bitcoin right now and the AI boom still has legs. — Reuters
The recent burst of investor optimism that the boom in artificial intelligence , ChatGPT software and advanced microchip technology will be transformational for economies is driving the surge in Big Tech. Matt Weller, analyst at StoneX, said there just doesn’t seem to be a compelling reason to buy bitcoin right now and the AI boom still has legs.
Since April 25, the NYSE FANG+TM index of big tech and growth stocks has surged 24%, nearly three times the broader Nasdaq. Bitcoin, on the other hand, is down around 1% in more erratic trading.The AI boom has gathered momentum despite the rise in bond yields and discount rates. Zooming out further, if bitcoin is the dollar hedge that its enthusiasts claim it to be, then it faces stiff headwinds from a “higher for longer” Fed and rising US yields that are pushing the dollar higher again.
“Should AI stocks’ outperformance extend further, we anticipate retail traders will start chasing other names more aggressively, further reducing the demand for crypto names,” Vanda analysts wrote last week.