Bitcoin recently posted its strongest three-day rally since 2023. According to prominent investors, the upward move reflects capital finally leaving an overheated artificial intelligence trade.
For months, analysts have debated the relationship between AI investments and Bitcoin's market performance. Research firm K33 warned in June that Bitcoin was losing ground while institutions chased AI returns. In July, investor Steve Eisman stated he sold his Google position to reduce AI exposure, describing the market as a crowded trade. Later that month, veteran macro investor Jordi Visser argued that the easy-money phase of AI was ending and that Bitcoin would benefit.
Bill Miller IV, chairman and chief investment officer at Miller Value Partners, has reinforced these views. His comments alongside Visser's provide clear signals from established investors that a rotation out of AI and into Bitcoin is actively underway.
Miller attributed the reversal to two primary forces. First, growing skepticism regarding the return on AI capital expenditures is driving long-dated thinkers back to cryptocurrency. Second, recent government interventions have eased market pressures. Japan and the US supported the yen in late July, and the US Treasury Department announced it would double its long-dated bond buybacks, easing yield pressures during a major crypto short-liquidation wave.
Miller also framed Bitcoin as a structural hedge against government debt. He noted that the projected $1.8 trillion US budget deficit for the year exceeds Bitcoin's entire market capitalization, highlighting the creation of new currency against Bitcoin's fixed supply.
This dual perspective—acting as both a tactical rotation target and a long-term hedge—reflects broader market reactions to recent Treasury actions. Other notable voices, including Robert Kiyosaki and Arthur Hayes, have similarly argued that suppressed yields and monetary policies are driving capital into scarce assets like Bitcoin and gold.
Whether this rotation sustains itself depends on whether concerns regarding AI valuations deepen or fade. Miller noted that once governments begin intervening to manage market stress, they rarely stop at a single round.
