AI Boom Leaves Digital Assets Behind as Crypto ETFs Face Fresh Outflows

We are witnessing a seismic reallocation of global risk capital.

Bitcoin sliding below the 69,000 mark, extending a brutal drawdown that wiped out more than 40% of its value since the heady record highs above 126,000 last year.

And even with President Trump repeated claims that the US becoming the crypto capital and pushing the clarity that has failed to stoke a rally that digital assets are confronting the longest stretch of ETF redemptions on record, led by a cash exodus from BlackRock's trust and all of this liquidity is being siphoned into one of the greatest technical markets in history.

The Nasdaq is up over 25% since the start of the second quarter, driven by a starring 70% surge in 7 stocks will joining.

Now to examine this liquidity tug of war is Jordi Visser, founder of VisserLabs and creator of AI Macro Nexus Research.

Great to have you here, Jordi.

Thank you so much for joining me.

Good to be here, Remy.

Well, of course we are looking at record highs for the major US stock averages.

We've seen this tech rally, but at the same time we are looking at red for the crypto market.

So give us your take on what's happening.

Is there an actual rotation?

Well, there's definitely some sort of rotation.

Digital assets used to be the king of parabolic moves, and it's being dominated right now by the artificial intelligence trade.

So my business is focused on the intersection of macro into AI and we've entered the agentic world and the infrastructure that's necessary for it has the attention.

But over the course of the next year we'll start transitioning into another phase which will be.

How the agentic phase will start to become a consumer and for a consumer they're going to need the crypto guardrail.

So I think this is going to continue until people stop focusing on AM we reach some kind of place where it stops going up parabolically, which will probably be sooner than people think.

Yes, so you mentioned a lot of moving parts there.

We're paying attention to what's happening in artificial intelligence, especially the mega cap names in tech, and we're hearing about debt raising here right at the same time for Google as well as the other Mag 7 companies.

So given what we're seeing in AI and what you just mentioned from the macro perspective, what are the implications here as we move forward when it comes to?

Well, I, I don't think based on what I hear a lot of people talk about, which is calling this a bubble, that people fully recognize how much the world changed in October of last year.

Beginning in November, we started to see the release of Opus 4.5, which was really the gateway to opening up the agentic world.

Inference needs are probably underestimated by everyone.

Still, we're only in the 1st or 2nd inning of the CAPE buildout that is necessary for these agents to run freely.

So I think most of the problem has been that people have underestimated how quickly the agentic world came on.

They may not even be noticing that this is happening.

When you mention the megacap names, this is really being driven by a breadth of names that are necessary for the infrastructure buildout.

I don't think as of yet, believe it or not, that we have done enough to.

Build in at least the next year's worth of earnings in these names.

We will have bottlenecks.

We will have shortages.

I've been writing about that a lot lately, but I think people need to focus on the agentic world only started this year, and that means we're in the very first inning of this buildout.

Yes, so two points that you made there that I do want to expand on.

So of course when we're talking about agentic, there are also implications regarding regulation, but also by industry.

So what are you paying attention to when it comes to digital assets in particular and gente?

So let's start with the agentic side and let's break it down simplistically into two parts.

There's the consumer side which is going to be.

Alexa, but ordering stuff for you and doing stuff for you.

And then there's the enterprise which is going to be the fear factor that people have had about labor replacement.

Both of those have barely started, so we're starting to get to the point that adoption is picking up.

We can see that through Anthropic's annualized revenue run rate.

We can guess what the consumer side is going to look like, but that has not started yet, and that's going to take some time, and we're still going to be a year out from that where the digital assets have to fall in.

And where you seem optimism, the reason I'm at the exchange today is about tokenization and stablecoins.

Now both of those do have parabolic moves in terms of usage and in terms of market cap when it comes to stablecoins.

I think people are ignoring those parabolas at this point, but that's only because all of the attention around the globe right now is centered justifiably so.

On the infrastructure and the buildout and of course while we have you here, since you're here at the New York Stock Exchange and you're going to be focused on stablecoin and tokenization as you mentioned for the layperson out there who is watching, give us in a nutshell what we can expect coming down the pike.

So I think people should use what's happening in AI and just realize we are going through, as Jensen Yang has said, a redesign of the global industrial system.

Intelligence is being put right now into factories to create tokens for the agents to consume.

That is going to intensify over the next 5 years as we have autonomous vehicles, we have flying cars, we have humanoids.

All of these things are coming for tokenization and for the other part, what people need to realize is this is the way that the global financial system gets redesigned.

So right now you're investing in the industrial side, which is the traditional way that most investors understand the growth side of that will be the financial guardrails which are going to go through their own design change.

The administration has been supportive of it.

It will be there, as I've said to people.

It's a bear market right now in crypto for a very, very good reason, which is all of the attention on growth and all of the attention on being able to get.

Significantly rallying assets is fixated on AI.

At some point over the course of the next 2-3 months, we will have built in enough of the upside for the next year and the downside will start to show up because there is a physical constraint and they'll be looking at software, software that's the financial side, and that will become popular again over the course of the summertime.

Yes, and Jordi, I only have time for one more question in about 60 seconds for your response.

So this year we have heard about these acronyms, whether we're talking about the SAS apocalypse or even the halo trade.

So what are the opportunities?

I still believe the opportunities are going to lie inside the infrastructure side.

There were some software names that were part of the software indices like Cadence Design System, like Palantir, like Synopsis that have done well, even Snowflake and places where they're going to benefit from AI.

I do think a lot of the seat-based SAS companies are still going to have trouble competing.

With AI, but I think for everyone looking out there for stuff, I would still focus on the infrastructure names, and I hate to say it.

This morning, Jensen Yang or overnight said that Marvell would be a $1 trillion company.

I think as of now it's about $250 to $300 billion company.

There's still opportunities in some of the optical related semiconductors.

And 30 seconds here, Jordi.

So I'm going to ask you, do you have any price targets when it comes to crypto?

Let's see.

Last year I thought Bitcoin would probably be about 5 to 10 times higher than it is today, so I think I've given up on being anything regarding price targets.

Here's what I believe will happen.

The crypto network is necessary for the next stage of the Agentic side.

I'm starting to do more and more videos and more and more connection between the ecosystem of crypto and Bitcoin.

Again, it'll take another 3 months before people start to find something where they feel comfortable to invest in again, and over the course of the next 5 years, people will start to recognize the redesigning of the financial guardrails is arguably as, if not more important than the redesign of the industrial system, so the investment side will become attractive again.

Well, Jodi, hope to have you back on the show.

So thank you so much for your time this morning.

I appreciate all of your insight.

Thanks Ryan.