Macro strategist Lyn Alden said bitcoin’s next move higher may depend less on crypto-specific catalysts and more on investors rotating out of overheated AI trades.
She told Natalie Brunell on the Coin Stories podcast:
“It could be that the AI stocks eventually just peak, they get so silly big that they can’t get realistically much higher.”
Rotation out of AI
Alden argued that when prices reach levels where further gains are hard to justify, capital tends to look for other assets with more perceived upside.
Bitcoin, which she noted is down nearly 46% from its October all-time high of $126,100, could be one destination.
Nvidia concentration questions
Some analysts are questioning whether the biggest AI names can maintain momentum into 2026.
Albion Financial Group CIO Jason Ware said on Fox Business:
“We all know they are the most concentrated, obvious winner in the AI build out. Can that growth continue in a way that supports the stock moving higher?”
Ware added that Nvidia is “probably the most important company and most important stock in America in the market.”
‘Marginal’ demand for bitcoin
Alden said bitcoin does not need a massive surge of capital to rise.
She said:
“It only takes a marginal amount of new demand to come in.”
Alden also described long-term holders as effectively supporting the market’s downside, pointing to coins moving from “fast money hands” into more committed holders.
That behavior is often reflected in metrics like Bitbo’s long-term holder supply and HODL waves.
No V-shaped bottom expected
Alden cautioned against expecting a rapid reversal.
She said:
“Bitcoin rarely makes V-shape bottoms outside COVID stimulus-type events.”
Alden added she expects more of a “grind,” including the possibility of another $10,000 to $20,000 lower before any sustained recovery.
