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The post Stock Market News: AI Stocks Now Make Up 40% of the U.S. Market appeared first on Coinpedia Fintech News AI stocks now make up about 40% of the U.S. stock market, according to Bravos Research, a level similar to concentrations seen before the 2000 Dot-Com crash and the 1929 market downturn.
Analysts and market observers are saying bitcoin's crash is happening due to traders chasing momentum and rotating out of crypto and into high-flying IPOs and AI stocks.
“Investors still believe in crypto, but now that it’s a contrarian bet, they favor fundamentals over vibes,” says Bitwise investment chief Matt Hougan.
The firm still views bitcoin as undervalued relative to equities, but says investors are rotating into AI stocks as the opportunity cost of missing gains by holding BTC is too high.
U.S. spot bitcoin funds bled cash for 11 straight sessions through Monday, the longest redemption streak since their 2024 launch, as risk dollars rotated toward an AI-led equities rally.
