Fidelity's Jurrien Timmer said the AI trade may be over, according to remarks reported by U.Today, and that the current bull market has a lot to accomplish to maintain its pace. Timmer added that trend continuation is still possible, though the stock market would have to carry more weight on its own.
The question is whether that transition would send fresh capital into crypto — and whether Bitcoin would be the asset to capture it.
The AI trade and a top-heavy market
According to the report, the AI "bubble" appears to be approaching a logical conclusion: the heavy funding of AI companies such as OpenAI and Anthropic could not continue indefinitely, and with Anthropic moving closer to an initial public offering, some existing investors might finally realize returns. Anthropic announced the launch of its IPO roadshow on November 10, with existing stockholders offering part of their holdings alongside newly issued shares.
Timmer pointed to the equal-weighted S&P 500 as a sign of a relatively healthier market environment, but noted that in a top-heavy market it may not be enough to keep carrying the index higher.
What could stand between Bitcoin and AI money
Crypto could benefit from a transitional period in the markets, though the report stresses that this is not guaranteed. Both risk tolerance and available funds appear to be running dry.
The main barrier between Bitcoin and capital rotating out of AI, as described, is volatility and perceptions of safety around the cryptocurrency market. The digital asset industry is not the same as it was before the AI era, with more risks having emerged — including cybersecurity concerns and questions about Bitcoin's quantum resistance — that could deter new investment.
Should a rotation occur, Bitcoin would be the main asset positioned to benefit, according to the report.
What confirmation would look like
The report says confirmation of a market recovery would require specific signs of a bull run in Bitcoin and larger-cap altcoins: higher highs and consistent inflows into institutional products such as ETFs.
Until those conditions align, the end of the AI trade followed by a rapid shift of funds into crypto looks very unlikely.
